Section 515--Working Group on Reintegration of Reserve Component Members Returning from Deployment

327

Section 516--National Guard Yellow Ribbon Reintegration Program

328

Section 517--Advance Notice to Members of Reserve Components of Deployment in Support of Contingency Operations

328

Subtitle C--Education and Training

329

Section 521--Reduction or Elimination of Service Obligation in an Army Reserve or Army National Guard Troop Program Unit for Certain Persons Selected as Medical Students at Uniformed Services University of the Health Sciences

329

Section 522--Increase in Annual Limit on Number of ROTC Scholarships Under Army Reserve and Army National Guard Program

329

Section 523--Revisions to Authority to Pay Tuition for Off-Duty Training or Education

329

Section 524--National Defense University Master's Degree Programs

329

Section 525--Recodification in Title 38, United States Code, of Certain Educational Assistance Programs for Members of the Reserve Components

330

Section 526--Secretary of Defense Evaluation of the Adequacy of the Degree-Granting Authorities of Certain Military Universities and Educational Institutions

Section 1102--Special Benefits for Civilian Employees Assigned on Deployment Temporary Change of Station

393

Section 1103--Accumulation of Annual Leave by Senior Level Employees

393

Section 1104--Travel Compensation for Wage Grade Personnel

394

Section 1105--Death Gratuity Authorized for Federal Employees

394

Section 1106--Modifications to the National Security Personnel System

394

Section 1107--Annuity Commencing Dates

395

Section 1108--Flexibility in Setting Pay for Employees Who Move from a Department of Defense or Coast Guard Nonappropriated Fund Instrumentality Position to a Position in the General Schedule Pay System

395

Section 1109--Transportation of Dependents, Household Effects, and Personal Property to Former Home Following Death of Federal Employee Where Death Resulted from Disease or Injury Incurred in a Combat zone

395

Section 1110--Use of Leave Transfer Program by Wounded Veterans Who are Federal Employees

396

Section 1111--Requirement for Full Implementation of Personnel Demonstration Project

396

TITLE XII--MATTERS RELATING TO OTHER NATIONS

396

ITEMS OF SPECIAL INTEREST

396

Accuracy of Tracing Personnel Data on Iraqi Security Forces

396

Contributions of the North Atlantic Treaty Organization's International Security Assistance Force to Security and Stability in Afghanistan

397

Iraqi WMD Scientists

397

Report on Certain Cooperative Activities Involving the United States and India

397

Report on Combatant Commanders Initiative Fund

398

Report On Feasibility and Advisability of a Stability Operations Fellowship Program

400

Report on Use of Liaison Authorities

400

Train and Equip Authorities

400

United States' Contributions to the North Atlantic Treaty Organization-led International Security Assistance Force

401

LEGISLATIVE PROVISIONS

402

Subtitle A--Assistance and Training

402

Section 1201--Military-to-Military Contacts and Comparable Activities

402

Section 1202--Authority for Support of Military Operations to Combat Terrorism

Section 2852--Report on Opportunities for Leveraging Funds of the Department of Defense and States to Prevent Disruption in Event of Electric Grid or Pipeline Failures

526

Subtitle F--Other Matters

526

Section 2861--Revised Deadline for Transfer of Arlington Naval Annex to Arlington National Cemetery

526

Section 2862--Transfer of Jurisdiction over Air Force Memorial to Department of the Air Force

526

Section 2863--Establishment of National Military Working Dog Teams Monument on Suitable Military Installations

527

Section 2864--Naming Housing Facility at Fort Carson, Colorado, in Honor of The Honorable Joel Hefley, a Former Member of the United States House of Representatives

527

Section 2865--Naming Navy and Marine Corps Reserve Center at Rock Island, Illinois, in Honor of The Honorable Lane Evans, a Former Member of the United States House of Representatives

527

Section 2866--Naming of Research Laboratory at Air Force Rome Research Site, Rome, New York, in Honor of The Honorable Sherwood L. Boehlert, a Former Member of the United States House of Representatives

527

Section 2867--Naming of Administration Building at Joint Systems Manufacturing Center, Lima, Ohio, in Honor of The Honorable Michael G. Oxley, a Former Member of the United States House of Representatives

527

Section 2868--Naming of the Logistics Automation Training Facility, Army Quartermaster Center and School, Fort Lee, Virginia, in honor of General Richard H. Thompson

527

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS

May 11, 2007- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. SKELTON, from the Committee on Armed Services, submitted the following

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany H.R. 1585]

The Committee on Armed Services, to whom was referred the bill (H.R. 1585) to authorize appropriations for fiscal year 2008 for military activities of the Department of Defense, to prescribe military personnel strengths for fiscal year 2008, and for other purposes, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass.

The amendments are as follows:

The amendment strikes all after the enacting clause of the bill and inserts a new text which appears in italic type in the reported bill.

The title of the bill is amended to reflect the amendment to the text of the bill.

EXPLANATION OF THE COMMITTEE AMENDMENTS

The committee adopted an amendment in the nature of a substitute during the consideration of H.R. 1585. The title of the bill is amended to reflect the amendment to the text of the bill. The remainder of the report discusses the bill, as amended.

PURPOSE OF THE LEGISLATION

The bill would--(1) Authorize appropriations for fiscal year 2007 for procurement and for research, development, test and evaluation (RDT&E); (2) Authorize appropriations for fiscal year 2007 for operation and maintenance (O&M) and for working capital funds; (3) Authorize for fiscal year 2007: (a) the personnel strength for each active duty component of the military departments; (b) the personnel strength for the Selected Reserve for each reserve component of the armed forces; (c) the military training student loads for each of the active and reserve components of the military departments; (4) Modify various elements of compensation for military personnel and impose certain requirements and limitations on personnel actions in the defense establishment; (5) Authorize appropriations for fiscal year 2007 for military construction and family housing; (6) Authorize emergency appropriations for increased costs due to Operation Iraqi Freedom and Operation Enduring Freedom; (7) Authorize appropriations for fiscal year 2007 for the Department of Energy national security programs; (8) Modify provisions related to the National Defense Stockpile; and (9) Authorize appropriations for fiscal year 2007 for the Maritime Administration.

RELATIONSHIP OF AUTHORIZATION TO APPROPRIATIONS

The bill does not generally provide budget authority. The bill authorizes appropriations. Subsequent appropriation acts provide budget authority. The bill addresses the following categories in the Department of Defense budget: procurement; research, development, test and evaluation; operation and maintenance; working capital funds, military personnel; and military construction and family housing. The bill also addresses Department of Energy National Security Programs and the Maritime Administration.

Active duty and reserve personnel strengths authorized in this bill and legislation affecting compensation for military personnel determine the remaining appropriation requirements of the Department of Defense. However, this bill does not provide authorization of specific dollar amounts for personnel.

SUMMARY OF AUTHORIZATION IN THE BILL

The President requested budget authority of $647.2 billion for the national defense budget function for fiscal year 2008. Of this amount, the President requested $483.2 billion for the Department of Defense, including $21.2 billion for military construction and family housing and $141.8 billion for ongoing costs of Operation Iraqi Freedom and Operation Enduring Freedom. The defense budget request for fiscal year 2008 also included $17.3 billion for Department of Energy national security programs and the Defense Nuclear Facilities Safety Board.

The committee recommends an overall level of $648.6 billion in budget authority of which $141.6 is for ongoing military operations. The amount of budget authority in the bill not directly associated with these operations represents a decrease of approximately $5.9 billion from the amount authorized for appropriation by the National Defense Authorization Act for Fiscal Year 2008 (Public Law 109-364).

SUMMARY TABLE OF AUTHORIZATIONS

The defense authorization act provides authorization for appropriations but does not generally provide budget authority. Budget authority is provided in appropriations acts. In order to relate the recommendations to the budget resolution, matters in addition to the dollar authorizations contained in this bill must be taken into account. A number of programs in the national defense function are authorized in other legislation. The following table summarizes authorizations included in the bill for fiscal year 2007 and, in addition, summarizes the implications of the committee action for the budget authority totals for national defense (budget function 050).

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RATIONALE FOR THE COMMITTEE BILL

H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008, reflects the House Committee on Armed Services' continued and unwavering support for the men and women of the armed forces and the civilian employees of the Department of Defense (DOD). The Department is deeply engaged in a number of ongoing military operations around the world, most significantly, the wars in Iraq and Afghanistan. The extent and intensity of the activities of the Department in the past year have served to highlight the incredible ingenuity, resourcefulness, valor, and sacrifice of our armed forces. While recognizing the impossibility of the task, the committee attempted to write a bill equal to the dedication shown by these professionals.

The committee's recommendations for H.R. 1585 are focused first and foremost on readiness. After more than five years at war, the strain of ongoing operations has taken a substantial toll on our military. DOD's reports on the state of readiness of our ground forces, particularly our non-deployed and next-to-deploy forces, are of deep concern. With long term deployments in harsh environments wearing out military equipment at an accelerated rate, many stateside units are not fully equipped and would not be considered ready if called upon to respond during an emergency. Lack of equipment and the high tempo of operations have forced the services to train only for immediate mission requirements, shortchanging training for other types of threats. In addition to providing increased funding for readiness accounts, the committee believes that more can be done to mobilize the industrial base in support of the armed forces.

The strain on the armed forces inevitably takes a heavy toll on service members and their families. The committee is concerned that deployments of active and reserve component forces are longer and significantly more frequent than ever in recent history, and has worked to ease this burden. These efforts include authorizing a 3.5 percent across-the-board pay increase for military service members, further reducing the military pay gap, prohibiting increases in health care fees, and increasing the size of the Army and Marine Corps. Recent revelations about Walter Reed Army Medical Center have also added new urgency to the committee's ongoing efforts to address problems in the care and processing of warriors transitioning from the Department of Defense to the Department of Veterans Affairs.

In a time of war, H.R. 1585 attempts to address the near-term needs of the armed forces first, but the committee was also mindful of the longer-term needs of the Department of Defense. The committee requires a thorough analysis of the roles and missions of the Department of Defense and a review of the core competencies of the military departments. This analysis is intended to help ensure the effective and efficient organization of the Department's resources in the future. The committee's overarching recommendations emphasized oversight and accountability.

Restoring Readiness

Equipment readiness, particularly for Army and Marine Corps ground forces, has been severely impacted by current operations in Iraq and Afghanistan. Army readiness has dropped to levels not seen since the 1970s. Today, every non-deployed Army and National Guard combat brigade would face significant challenges completing their assigned missions if they were called upon to fight. Despite more than $35.0 billion in supplemental congressional appropriations for the ongoing reset of the Army's equipment since 2001, deficiencies in equipment readiness persist. While the Navy shows some level of recovery in aviation readiness in fiscal year 2008, Air Force readiness continues to decline due to a high tempo of operations. Flying more than 200 sorties per day in the United States Central Command area of responsibility, the Air Force's high utilization of a smaller, older air fleet has resulted in readiness rates that are 17 percent below unit operational readiness rates prior to September 11, 2001, and are below the all-time low levels observed last year.

In addition to the equipment shortfalls, the committee is also concerned about degradation in training due to high operational tempo and funding reductions. The committee notes that ground force training is focused solely on current operations and that full-spectrum combat training proficiency has declined precipitously. The high tempo of Operation Iraqi Freedom and Operation Enduring Freedom has also reduced the time available for units to train between deployments. Constraints on time and equipment have forced commanders to seek efficiencies in completing required pre-deployment training. Rotations at the National Training Center were eliminated for the last two brigade combat teams deployed to Iraq, with the units conducting home-station training in the states of Washington and Georgia, instead of in the desert at Fort Irwin, California.

Under current plans, critical readiness shortfalls will persist for nearly a decade. Therefore, the committee recommends the establishment of a Defense Readiness Production Board to act as a dedicated advisory body to the Secretary of Defense, focused on identifying and correcting the most serious readiness shortfalls. The board would serve to elevate the identification and approval of critical readiness requirements to a level above the military services, where such reviews have been inherently constrained by budget limitations and the processes used to formulate them. The committee also recommends additional readiness funding and creates significant new authorities to expedite DOD's ability to address critical readiness requirements.

Taking Care of Service Members and Their Families

The committee continues to believe that successful recruiting and retention in a wartime environment directly depends on the close oversight of compensation and benefit programs to ensure that they remain robust, flexible, and effective. The committee recommends an across-the-board pay raise of 3.5 percent, one-half of one percent above pay raise levels in the private sector as measured by the Employment Cost Index for the ninth consecutive year. The committee also supports the proposal of the Department of Defense's Tenth Quadrennial Review of Military Compensation to consolidate and simplify the system of special and incentive pays. The committee recommends reform of those pays to make them more understandable and easier to administer.

The committee strongly supports the proposed increase in end strength for the active Army and Marine Corps submitted as part of the fiscal year 2008 budget request. However, the committee is concerned that the proposed increase is phased in over five years even while today's end strength levels remain too low to meet the demands of current requirements. The committee continues to recommend active end strength levels greater than those requested. The committee's recommendation for fiscal year 2008 would increase the active Army end strength by 36,000 and the Marine Corps end strength by 9,000 above the budget request.

The committee is also concerned that, within the Defense Health Program, the President's budget anticipated savings of $1.9 billion on potential recommendations from the task force on the future of military health care. The committee is concerned that assuming fee increases in the President's budget request may taint the independence of the task force and its work. The committee recommends restoring the $1.9 billion in savings to the Defense Health Program. While well aware of rising health care costs within the Department, but that any proposed recommendations that directly impact service members, retirees and their families must be done in a comprehensive and prudent manner.

Ongoing Military Operations

The ongoing military operations of the Department of Defense have consumed in excess of $500.0 billion over the last five years, all of which has been provided in emergency supplemental appropriations with limited congressional oversight. Fiscal year 2008 represents the first fiscal year that the Department, pursuant to section 1008 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), submitted a full-year budget request for ongoing military operations along with its fiscal year 2008 base budget request. The committee has reviewed and authorized the entirety of the Department of Defense's portion of this request, a significant step toward restoring appropriate oversight of defense spending. In addition, the committee took significant steps to address the strategic direction of U.S. policy in both Iraq and Afghanistan by requiring the reevaluation of the policy in Iraq, and by requiring a long term plan for sustaining stability in Afghanistan.

Roles and missions

The current structure of the Department of Defense was established in the National Security Act of 1947, which created the Department, and placed the three military departments within it. Efforts at defense reform since have focused on enhancing the Office of the Secretary of Defense, improving the joint operational command and control of military forces, and on creating specialized capabilities such as special operations forces. However, the basic structure of the Department and the division of labor between the military services has not dramatically changed. The committee believes that a thorough review of roles and missions is overdue.

The committee believes that the missions of the Department of Defense must be clearly defined. As important as what the missions of the Department are, and how they are organized and distributed, is what the missions of the Department of Defense are not. In recent years, the shortcomings of the interagency process have led the Department to assume missions that are not core military responsibilities. A review of roles and missions would allow the Department a chance to correct excesses in this area. The military services bring certain core competencies to the execution of DOD's missions. Defining these core competencies would allow the Department to evaluate where the military services are engaged in missions for which they are not ideally organized, trained, and equipped. It would also allow the Department to determine areas where core competencies are lacking. The committee also believes that the organization of roles and missions should be reflected in organization of the requirements and budget processes of the Department.

Oversight and Accountability

The committee remains concerned about the level of oversight for contracting in Iraq and Afghanistan. These countries present uniquely complex challenges for contracting and contract oversight, but U.S. efforts in these countries will continue to require significant contractor support. The committee believes that government responsibilities for a range of issues involving contracting in Iraq and Afghanistan are unclear. The committee believes that clarification of roles and responsibilities for contracting in Iraq and Afghanistan and increased oversight will enhance the effectiveness of U.S. Government efforts in both countries. Further, consistent with its longstanding interest in and jurisdiction over matters of acquisition, the committee worked to improve the ability of the heads of all federal agencies to promote competition in contracting and to maximize the use of efficient contracting methods such as fixed price contracting in procurement programs.

Balancing Near and Longer-Term Military Capabilities

The committee made significant adjustments in the areas of procurement and research, development, test, and evaluation in an effort to balance the urgent near-term requirements of the Department of Defense against longer-term requirements. Adjustments that the committee made in this area were focused on delays in programs, or portions of programs, not scheduled to field equipment for five or more years, while transferring funding to warfighting priorities, such as fully funding the combatant commander's requirement for the mine resistant ambush protected vehicle. The committee took steps to reverse the decline in the Navy's fleet by adding funding for construction of three ships. Additionally, the committee took steps to address concerns about aging aircraft and the operational tempo of the Department's strategic mobility aircraft fleet by adding funding for 10 additional C-17 aircraft.

HEARINGS

Committee consideration of the National Defense Authorization Act for Fiscal Year 2008 results from hearings that began on January 11, 2007, and that were completed on April 19, 2007. The full committee conducted 20 sessions. In addition, a total of 36 sessions were conducted by 6 different subcommittees on various titles of the bill.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

OVERVIEW

The budget request for fiscal year 2008 contained $101.7 billion for procurement. This represents a $28.1 billion increase from the amount authorized for fiscal year 2007.

The committee recommends authorization of $102.7 billion, an increase of $1.0 billion from the fiscal year 2008 request.

The committee recommendations for the fiscal year 2008 procurement program are identified in the table below. Major issues are discussed following the table.

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AIRCRAFT PROCUREMENT, ARMY

OVERVIEW

The budget request for fiscal year 2008 contained $4.4 billion for Aircraft Procurement, Army. The committee recommends authorization of $3.9 billion, a decrease of $433.8 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Aircraft Procurement, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Airborne reconnaissance--low

The budget request contained $52.3 million for the airborne reconnaissance--low (ARL) program.

The committee recognizes the importance of the ARL program and is committed to the replacement of this legacy platform through the aerial common sensor program. However, the committee notes that justification materials provided to the committee do not adequately explain how requested funding will be executed in fiscal year 2008 and do not explain the significant cost growth compared to fiscal year 2007.

The committee recommends $42.3 million, a decrease of $10.0 million, for the ARL program.

Armed reconnaissance helicopter

The budget request contained $468.3 million in procurement; $82.3 million in research and development, PE 64220A, titled Armed, Deployable OH-58D; and $222.2 million for procurement in the fiscal year 2008 request for ongoing military operations for the armed reconnaissance helicopter (ARH). The budget also contained $20.8 million for OH-58 modifications, the aircraft the ARH is intended to replace.

ARH low-rate initial production was to have begun in December 2006. The committee notes that the Army ARH program issued a stop work order on the program on March 21, 2007, and discussions continue between the contractor and senior acquisition officials of the Army, while the contractor continues work at its own risk. One of the four test aircraft has crashed. Current estimates are for procurement unit cost growth to double from original estimates of approximately $5.2 million per aircraft to well over $10.0 million per aircraft. The schedule is currently estimated to slip one year.

The committee recommends that the Army terminate this program and initiate a new source selection for the procurement of an ARH. The committee also recommends that the Army consider minor modification of its key performance parameters, to allow more competitors to compete for this program.

The committee recommends no funds for procurement of ARH; $50.0 million, a decrease of $32.3 million, in PE 64220A for ARH; and 51.8 million, an increase of $31.0 million, for additional OH-58 modifications. The committee recommends no funds in title XV of this Act for ARH.

UH-60A to UH-60L helicopter upgrade

The budget request contained $13.0 million to procure and field the crashworthy external fuel system safety modification for UH-60 helicopters, but the request did not contain funds for replacement of UH-60A engine transmissions and engine upgrades as part of the UH-60A upgrade program.

The committee notes the prior year funding to complete the non-recurring engineering for a UH-60A to UH-60L upgrade, which would primarily apply to Army National Guard helicopters, resulting in significantly increased reliability, reduction in operating costs, and increased capability.

The committee recommends an increase of $5.0 million for the upgrade of UH-60As to the UH-60L configuration.

MISSILE PROCUREMENT, ARMY

OVERVIEW

The budget request for fiscal year 2008 contained $2.1 billion for Missile Procurement, Army. The committee recommends authorization of $2.1 billion, an increase of $11.8 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Missile Procurement, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Patriot PAC-3 missiles

The budget request contained $472.9 million for the procurement of Patriot PAC-3 missiles, a combat-proven missile defense system designed to defend against short- and medium-range ballistic missiles. Based on testimony of combatant commanders over the past several years, the committee believes that more Patriot PAC-3 missiles are required.

The budget request contained $569.9 million for modifications to the Patriot weapons system.

The committee supports the Army's decision to complete the upgrade of the remaining PAC-2 firing units to PAC-3 configuration and its decision to begin the procurement of equipment for two additional Patriot battalions. The committee notes that this decision will provide the warfighter an enhanced capability to meet the near-term ballistic missile threats to our deployed forces and our allies.

The committee recommends $569.9 million for modifications to the Patriot weapons system, the amount of the budget request.

Tube-launched optically-tracked wire-guided missile

The committee recognizes the increasing requirement for TOW missiles; as well as the significant challenges the Army and Marine Corps face in maintaining an adequate inventory. To sustain the industrial base, the minimum sustained production rate has been raised to 2,255 missiles per-year. The committee is concerned that while the Army has chosen to request funding to fulfill this requirement in fiscal year 2008, the fiscal year 2009 projected Army budget contains a request for only 1,586 missiles. The projected Marine Corps budget request for fiscal year 2009 will not contain procurement of any TOW missiles. Therefore, the total buy will be below the minimum sustained rate of production and would force a substantial increase in the price per missile. The committee also recognizes that in-theater there is an overwhelming requirement for the TOW `bunker buster' (BB) variant in theater. The Army's current acquisition strategy is to procure approximately three times more TOW anti-armor (2B AERO) variants than TOW BB variants.

The committee strongly encourages the Army to reconsider their acquisition strategy to maintain the minimum sustained rate of production. The committee recommends that the Army consider realigning the quantity of TOW BB missiles to be procured to reflect the current demand of these missiles by deployed forces.

WEAPONS AND TRACKED COMBAT VEHICLES, ARMY

OVERVIEW

The budget request for fiscal year 2008 contained $3.2 billion for Weapons and Tracked Combat Vehicles, Army. The committee recommends authorization of $3.3 billion, an increase of $73.9 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Weapons and Tracked Combat Vehicles, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Abrams tank total integrated engine revitalization program strategy

In the committee report (H. Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007, the committee raised concerns regarding the Army's M1 Abrams tank modernization program and associated funding. The total integrated engine revitalization (TIGER) program for the M1 Abrams tank is an integrated engine maintenance program that increases the service life of M1 Abrams tank engines from 700 to 1,400 hours. The committee strongly encourages both the Chief of Staff of the Army and the Chief of the National Guard Bureau to develop and fund a plan that modernizes the entire Abrams engine tank fleet with TIGER engines by 2010.

Abrams tank multiyear procurement authority

In the committee report (H. Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007, the committee encouraged the Army to examine the possibility of a multiyear procurement contract for M1 Abrams tanks based on the large number of upgraded M1 Abrams tanks the Army plans to procure. The committee strongly supports the Army's efforts to upgrade its fleet of M1 Abrams tanks with the latest technology and believes that the potential savings from a multiyear procurement contract could prove substantial.

While the committee is pleased that the Army requested multiyear authority starting in fiscal year 2008 for the M1A2 system enhancement package (SEP) Abrams tank upgrade program, it is extremely disappointed that the Army chose to place the funding for the fiscal year 2008 allocation of the contract in the fiscal year 2008 funding request for ongoing military operations. The committee believes a multiyear contract should not be contained in an emergency request since it requires planning and contracting for procurement four to five years in the future. The committee provided the requested multiyear procurement authority in section 111 of this Act; however, the committee strongly encourages the Army to place funding for the multiyear procurement of M1A2 SEP Abrams tanks in the President's base budget request for fiscal year 2009.

Army National Guard Stryker vehicles

The committee recognizes the possible utility of equipping additional Army National Guard (ARNG) units with Stryker vehicles. The committee understands that Stryker forces have proven their utility and effectiveness in Operation Iraqi Freedom (OIF) during their constant deployment to OIF since 2003. The committee recognizes that the combat and homeland security capability of Stryker vehicles could also increase the ARNG's ability to meet future mission requirements. However, the committee also believes that pursuing additional Stryker units for the ARNG may entail substantial costs for increased procurement, logistics support, military construction, and training, and that these costs have not been fully analyzed by the Army. Additionally, the committee is concerned that pursuing additional Stryker vehicles for the ARNG may compete with funding needed to address more basic, and longstanding, equipment shortfalls in the ARNG for modern wheeled vehicles, communications systems, tracked combat vehicles, and many other classes of equipment. Finally, the committee notes that $1.1 billion in additional funding was provided for National Guard equipment in title I of this Act, and that the ARNG could use that funding to procure Stryker vehicles.

The committee directs the Army to submit a report to the congressional defense committees that analyzes the potential utility, in terms of both combat and domestic emergency response capability, of equipping additional ARNG units with Stryker vehicles. The report shall include the comments of the Chief of the National Guard Bureau on each of the items described below. This analysis shall include a range of options for equipping ARNG units including, but not limited to, converting ARNG infantry brigades to Stryker brigades and creating hybrid ARNG brigades that are partially equipped with Stryker vehicles. The report shall also include estimates for the cost of the various alternatives compared to baseline funding projections for ARNG equipment modernization, logistics support, military construction, training, and other relevant cost factors. The Army shall provide this report to the congressional defense committees by March 1, 2008.

Bradley fighting vehicle multiyear procurement authority

In the committee report (H. Rept. 109-452) accompanying National Defense Authorization Act for Fiscal Year 2007, the committee encouraged the Army to examine the possibility of a multiyear procurement contract for M2 Bradley fighting vehicles (BFVs) based on the large number of upgraded M2 BFVs the Army plans to procure. The committee strongly supports the Army's efforts to upgrade its fleet of M2 BFVs with the latest technology and believes that the potential savings from a multiyear procurement contract could prove substantial.

While the committee is pleased that the Army requested multiyear authority starting in fiscal year 2008 for M2 BFV procurement, it is extremely disappointed that the Army chose to place the funding for the fiscal year 2008 allocation of the contract in the fiscal year 2008 funding request for ongoing military operations. The committee believes a multiyear contract should not be contained in an emergency request since it requires planning and contracting for procurement four to five years in the future. The committee provided the requested multiyear procurement authority in section 112 of this Act; however, the committee strongly encourages the Army to place funding for the multiyear procurement of M2 BFVs in the President's base budget request for fiscal year 2009.

The funding was requested in two lines. These lines were `Future Combat Systems (FCS)' for $79.5 million and `FCS Spin Outs' for $20.1 million. The committee notes that the requested amounts will procure a wide array of FCS equipment including computers, unmanned ground vehicles, unattended sensors, and other non-vehicular equipment that the Army normally includes in other parts of the budget request. The committee is concerned that requesting future funding in this manner will make congressional oversight more difficult and create execution challenges for the Army.

The committee recommends $99.6 million, the amount of the budget request, for FCS procurement in fiscal year 2008. However, the committee urges the Army to consider spreading future FCS procurement requests across multiple, and more specific, procurement budget lines beginning with the fiscal year 2009 budget request.

Stryker vehicle program adjustment

The budget request contained $1.0 billion for Stryker vehicles and upgrades, containing $456.3 million for the procurement of 87 Stryker Mobile Gun System (MGS) variants.

The committee notes that the request for Stryker MGS vehicles was based upon conduct of an operational test and evaluation event in the first quarter of fiscal year 2007 and a Milestone C full-rate production decision in the second quarter of fiscal year 2007. However, the committee notes that both of these events, which are required for full-rate production, will be delayed a minimum of six months and possibly as long as ten months. The committee also notes that the Army has an unfunded requirement for $775.1 million for procurement of other variants of the Stryker vehicle and upgrades in fiscal year 2008.

The committee recommends $1.1 billion, an increase of $65.9 million, for Stryker vehicle procurement in fiscal year 2008. The committee recommends that the Army fund production of only 43 Stryker MGS vehicles in fiscal year 2008 and use the remaining funds and the additional $65.9 million provided by the committee to procure, at a minimum, the following items from the Army's unfunded requirement for Stryker vehicles: 42 Stryker ambulances, 36 Stryker vehicles in anticipation of battle losses, driver protection upgrades, and additional Stryker vehicle armor.

Stryker mobile gun system deployment plan

The committee is concerned that the Army plans to deploy low-rate initial production versions of the Stryker MGS vehicle to Operation Iraqi Freedom prior to completion of operational testing and live-fire test and evaluation. The Subcommittee on Air and Land Forces received testimony on March 27, 2007, from the Army that problems experienced during developmental testing have been addressed to a degree acceptable to field commanders for combat operations. The committee understands the urgency of deploying all available combat systems requested by field commanders; however, the committee urges the Army to complete the required operational and live-fire testing as early as possible and to make any necessary modifications to deployed vehicles.

AMMUNITION PROCUREMENT, ARMY

OVERVIEW

The budget request for fiscal year 2008 contained $2.2 billion for Ammunition Procurement, Army. The committee recommends authorization of $2.2 billion, an increase of $47.6 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Ammunition Procurement, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

The committee is aware the Excalibur XM982 projectile is proceeding into early production to support an urgent fielding requirement in Operation Iraqi Freedom. The committee understands the Excalibur XM982 would potentially reduce collateral damage in urban environments and serve as a significant combat multiplier to military personnel.

OTHER PROCUREMENT, ARMY

OVERVIEW

The budget request for fiscal year 2008 contained $11.9 billion for Other Procurement, Army. The committee recommends authorization of $11.5 billion, a decrease of $394.8 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Other Procurement, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Automatic identification technology for Army depots

The budget request contained no funds for commercial, off the shelf, automatic identification, and data collection solutions for Army depots.

The committee recommends an increase of $6.0 million for the Army Product Manager, Joint Automatic Identification Technology Office to continue improvements to the repair and rebuilding processes for combat vehicles and equipment at Anniston Army Depot and Red River Army Depot through integration of commercial, off the shelf, automatic identification technology, automated data collection, and work flow management solutions.

Force XXI Battle Command Brigade and Below

The budget request contained $250.1 million for the procurement of 7,659 Force XXI Battle Command Brigade and Below (FBCB2) systems. In addition, the fiscal year 2008 budget request for ongoing military operations contained $374.0 million for 4,820 FBCB2 systems.

The committee supports continued fielding of the FBCB2 system. However, the committee notes that the Army received $159.7 million for 4,434 FBCB2 systems in fiscal year 2007 and that production capacity for this system is limited.

The committee recommends $187.6 million, a decrease of $62.5 million, for FBCB2 systems in title I of this Act. The committee notes that additional funding for FBCB2 systems is authorized in title XV of this Act.

Forward Area Air Defense Command and Control

The budget request contained $9.0 million for Forward Area Air Defense Command and Control (FAAD C2) systems. In addition, the fiscal year 2008 budget request for ongoing military operations contained $21.5 million for FAAD C2 systems.

The committee notes that the Army received $228.6 million for FAAD C2 systems in fiscal year 2006 and an additional $21.0 million in fiscal year 2007. The committee also notes that production capacity for FAAD C2 equipment is limited.

The committee recommends no funding for FAAD C2, a decrease of $9.0 million, in title I of this Act. The committee notes that additional funding for FAAD C2 systems is recommended in title XV of this Act.

Future Unmanned Aerial Vehicle threat to Army forces

The committee is concerned that current Army air defense capabilities may not be appropriate given the evolving threat to Army forces posed by Unmanned Aerial Vehicles (UAV). The committee directs the Army to submit a report to the congressional defense committees by January 15, 2008, which shall include an analysis of the current and future UAV threat to deployed Army forces and the Army's plan, with regard to air defense systems and force structure, to address current and future UAV threats. In the report, the Army shall take into account the Air Force Scientific Advisory Board report titled `Report on Air Defense Against Unmanned Aerial Vehicles,' dated August 1, 2006, and ongoing joint staff and service studies and analyses on joint integrated air and missile defense. The report shall include an unclassified summary.

Individual soldier survivability equipment budget line item

The committee recognizes the majority of funding for individual soldier survivability equipment, such as body armor, is contained in the fiscal year 2008 budget request for ongoing military operations, specifically within Operation and Maintenance budget activities.

The committee feels long range planning, programming, and budgeting, as part of a stabilized long-term acquisition strategy, would produce a cost-effective and efficient method for the manufacturing and fielding of individual soldier survivability equipment, such as body armor and associated components.

Therefore, the committee strongly encourages the Department of the Army to establish a funding budget line item in the Other Procurement, Army budget account for individual soldier survivability equipment such as body armor and associated components.

Joint Network Node

The budget request contained $372.4 million for the procurement of Joint Network Node (JNN) equipment. In addition, the fiscal year 2008 budget request for ongoing military operations contained $2.2 billion for JNN equipment.

The committee expressed concern regarding the lack of coordination and potential capability overlap between the Warfighter Information Network--Tactical (WIN-T) program and the JNN program in section 114 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) and required a report from the Department of the Army on its future battlefield network equipment modernization plan. The required report describes a plan to procure JNN for the entire Army while also spending significant research and development funding to continue work on WIN-T. While the committee supports the Army's goal to improve its battlefield networking capability, the committee remains concerned that the JNN program continues to procure equipment outside of normal Department of Defense procedures that provide for testing and competition.

The committee recommends $344.9 million, a decrease of $27.5 million, for JNN equipment in title I of this Act. The committee notes that additional funding for JNN equipment is authorized in title XV of this Act.

Maneuver Control System

The budget request contained $122.5 million for Maneuver Control System (MCS) equipment and support services. In addition, the fiscal year 2008 budget request for ongoing military operations contained $57.9 million for MCS equipment and support services.

The committee notes that the MCS program received $76.7 million in fiscal year 2007 and that the Army's production capacity for MCS equipment is limited.

The committee recommends $80.5 million, a decrease of $42.0 million, for MCS equipment in title I of this Act. The committee notes that additional funding for MCS equipment is authorized in title XV of this Act.

Mine protection vehicle family

The budget request contained $199.1 million for the mine protection vehicle family, of which $66.0 million would procure approximately 82 medium mine protected vehicles (MMPV).

The committee believes the mine resistant ambush protected (MRAP) category 2 vehicle could potentially fulfill the requirement for a medium mine protected vehicle. Furthermore, the committee notes current Army budget justification materials indicate that funding is provided for the medium mine protected vehicle program elsewhere in the Army Procurement budget activities. The committee is aware the budget request for the MMPV is for a potential contract award and the committee notes vehicles would not be delivered until the second quarter of fiscal year 2009.

The committee recommends realigning $66.0 million from the mine protection vehicle family to the budget request for ongoing military operations in order to address the Chief of Staff of the Army urgent unfunded MRAP vehicle requirements.

Nonsystems training devices

The budget request contained $201.8 million to procure nonsystem training devices, but contained no funds to modernize the Combat Arms Training System (CATS) for the Army National Guard (ARNG); to procure the Call for Fire Trainer Iteration II/Joint Fires and Effects Trainer System (JFETS); to procure the Virtual Interactive Combat Environment (VICE) System for the ARNG; to procure combat skills training simulation systems for the ARNG; or to procure the Homestation Instrumentation Training System (HITS) Air and Missile Defense Instrumentation Training System.

The committee notes that each of these systems provides needed training for non-deployed and `next to deploy' military personnel involved in ongoing operations throughout the world. The committee understands CATS requires modernization to move from analog to digital technology. The committee notes the JFETS has already trained almost 4,000 soldiers and has proved to be a useful tool for soldiers preparing to deploy to the U.S. Central Command area of responsibility. The committee understands there is an emphasis to train military personnel in urban operations and asymmetric tactical situations similar to those being experienced by soldiers in Operation Iraqi Freedom. The committee notes the VICE could provide such capability at relative low cost and would allow ARNG units to be effectively trained in these type situations. The committee is aware the Ohio National Guard has critical requirements for combat skills training systems in order to ensure combat effective readiness and proficiency before deployments. The committee understands current HITS require improvements and enhancements to instrumentation in order to better provide full spectrum training capability for air and missile defense units.

The committee recommends $6.0 million for CATS for the ARNG, $5.0 million for the JFETS, $4.0 million for the VICE, $0.8 million for combat skills training systems for the ARNG, and $2.9 million for improvements to current HITS; an increase of $18.7 million for nonsystem training devices.

Profiler system

The budget request contained $10.8 million for profiler systems. In addition, the fiscal year 2008 budget request for ongoing military operations contained $64.8 million for profiler systems.

The committee notes that in fiscal year 2006 the Army received $125.0 million for profiler systems and an additional $8.6 million in fiscal year 2007, but that the Army's production capacity for this system is limited.

The committee recommends $2.8 million, a decrease of $8.0 million, for profiler systems in Title I of this Act. The committee notes that additional funding for profiler systems is authorized in Title XV of this Act.

Radio, improved high-frequency family

The budget request contained $81.4 million for radio, improved high-frequency family systems. In addition, the fiscal year 2008 budget request for ongoing military operations contained $433.4 million for radio, improved high frequency family systems.

The committee notes that during fiscal years 2006 and 2007 that the Army received funding to procure more than 36,000 improved high-frequency radios. However, the fiscal year 2008 request is based upon a unit cost per radio that is either flat or has increased compared to fiscal year 2007. The committee is aware that the Army plans to continue to procure thousands of additional radio, improved high-frequency family systems, and urges the Army to negotiate a lower unit cost per system with manufactures or conduct a new competitive bid process for future purchases of radio, improved high-frequency family systems.

The committee recommends $61.0 million, a decrease of $20.4 million, for radio, improved high-frequency family systems. The committee notes that additional funding for radio, improved high-frequency family systems is authorized in title XV of this Act.

Shadow unmanned aerial systems

The budget request contained $70.2 million and the fiscal year 2008 request for ongoing military operations contained $176.5 million for Shadow unmanned aerial vehicle systems (UAS).

The justification materials provided by the Department of the Army for the fiscal year 2008 request priced the cost of a Shadow UAS system at $11.7 million per system, while the fiscal year 2008 request for ongoing military operations priced the cost of a system at $8.9 million per system.

The committee recommends $64.4 million, a decrease of $5.8 million, for Shadow UAS.

Simulated expandable combat training capability for Army National Guard

The budget request contained $16.3 million for Combat Training Centers support and other associated costs, but contained no funds for simulated combat training capability systems for the Army National Guard (ARNG).

The committee understands this system would provide effective simulated pre-mobilization and post-mobilization home-station training for ARNG units participating in the Operation Iraqi Freedom and the Operation Enduring Freedom. The committee recognizes that although there is no substitute for the robust live-fire and simulated training capabilities provided at Combat Training Centers (CTCs) and through the Joint National Training Capability (JNTC), this particular system would supplement CTC and JNTC activities, as well as provide additional training opportunities for ARNG units at their home stations who are preparing to deploy. Furthermore, the committee believes that this additional simulated training capability would potentially contribute to more effective CTC and JNTC training exercises for ARNG units.

The committee recommends an increase of $3.8 million to provide simulated, flexible and expandable combat training capability to ARNG `next to deploy' units.

Tactical Operations Centers

The budget request contained $393.9 million for Tactical Operations Centers (TOCs) equipment. In addition, the budget request for ongoing military operations contained $263.7 million for TOCs equipment.

The committee notes that the Army TOC program provides a capability similar to several other DOD programs, including the Navy Deployable Joint Command and Control (DJC2) and U.S. Marine Corps Combat Operations Center (COC) programs. The committee also notes that the Army received $57.5 million in fiscal year 2007 for the TOCs program.

The committee recommends $196.9 million, a decrease of $196.9 million, for TOCs equipment. The committee urges the Army to coordinate with the Navy and Marine Corps to procure, where possible, common command post equipment in order to reduce the unit cost of each system and to improve interoperability. The committee notes that additional funding for TOCs equipment is authorized in title XV of this Act.

Tactical wheeled vehicle armor classification levels

The committee is aware that efforts to quickly armor tactical wheeled vehicles resulted in three basic methods of installing vehicle armor: armor integrated into the vehicle on the assembly line; armor added as a Department-approved kit specifically designed for a particular vehicle; and armor added in the field. These three methods of armor installation were designated Levels I, II, and III, respectively. Although these levels only refer to the method of armor installation, they are generally viewed as defining the level of crew protection. After careful review of all the tactical vehicles and their true armor protection level, the committee found that the levels as currently defined do not necessarily indicate the level of protection.

The committee is aware the Department of Defense is developing new armor protection definitions and expects to complete them by 2007. The committee strongly encourages the development of new definitions for armor protection levels based on actual protection provided versus installation method. The committee expects the Department to make this a top priority and encourages the Department to expedite this process so that commanders and their troops understand the true level of protection offered by a myriad of armor configurations present in the current force.

JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

OVERVIEW

The budget request for fiscal year 2008 contained $500.0 million for Joint Improvised Explosive Device Defeat Fund. The committee recommends authorization at the request level of $500.0 million.

The committee recommendations for the fiscal year 2008 Joint Improvised Explosive Device Defeat Fund program are identified in the table below. Major changes to the Army request are discussed following the table.

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AIRCRAFT PROCUREMENT, NAVY

OVERVIEW

The budget request for fiscal year 2008 contained $12.7 billion for Aircraft Procurement, Navy. The committee recommends authorization of $12.7 billion, an increase of $3.0 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Aircraft Procurement, Navy program are identified in the table below. Major changes to the Navy request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Conventional Trident Modification

The budget request contained $175.4 million for the Conventional Trident Modification, containing $36.0 million within Weapons Procurement, Navy, $13.0 million within Other Procurement, Navy, and $126.4 million within Research Development Test and Evaluation, Navy.

The committee believes it is necessary for the United States to be able to respond to a range of potential threats with a prompt conventional global strike capability. The committee recognizes that converting selected missiles of the trident strategic nuclear deterrence arsenal to carry conventional payloads is the most technically mature and cost effective way to achieve that capability.

As required by section 219 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), the Secretary of Defense, in consultation with the Secretary of State, submitted a report that addresses concerns identified by Congress about the concept of operations associated with the Conventional Trident Modification program including the possibility of misinterpretation of a launch event from a submarine by both allies and potential adversaries. The committee notes that the Secretary of Defense assesses the risk of misinterpretation to be `extremely low.' However, the committee is also aware that a National Academy of Sciences study has been initiated to further analyze the Conventional Trident's mission requirement. The committee would like to ensure that significant study recommendations, risk mitigation strategies, and strategic policy considerations receive due consideration concurrently with development and testing of the system and prior to operationally fielding the system. Therefore, for fiscal year 2008, the committee supports continued research, development, test and evaluation for the Conventional Trident Modification program. However, the committee includes a provision, section 124 of this Act, that would prevent fiscal year 2008 funds from being obligated or expended for operational deployment of the system. Further, this section would also require the Secretary of Defense to submit written notification to the congressional defense committees at such time as the Secretary determines that the system is fully functional and fielding is necessary to meet military requirements.

The committee recommends a decrease of $26.0 million within Weapons Procurement, Navy, and a decrease of $7.0 million within Other Procurement, Navy, for funds associated with long-lead procurement for the Conventional Trident Modification.

AMMUNITION PROCUREMENT, NAVY & MARINE CORPS

OVERVIEW

The budget request for fiscal year 2008 contained $1.1 billion for Ammunition Procurement, Navy & Marine Corps. The committee recommends authorization at the budget request level of $1.1 billion for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Ammunition Procurement, Navy & Marine Corps program are identified in the table below. Major changes to the Navy & Marine Corps request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Littoral Combat Ship

The budget request contained $910.5 million for the construction of three Littoral Combat Ships (LCS). The LCS is designed to counter asymmetric threats in the littoral waters of the world's oceans with an interchangeable system of capabilities; anti-submarine, anti-mine, and anti-surface warfare.

The committee notes with concern the significant cost growth experienced within the LCS program, which has recently led to a termination of a contract option to construct the third ship of the class. In testimony before the Subcommittee on Seapower and Expeditionary Forces on February 8, 2007, Navy and industry witnesses agreed that the original ship construction schedule for the lead ship was overly aggressive and that Navy and industry program managers sought to maintain schedule performance, rather than cost performance, to the detriment of cost-effective construction. The witnesses also agreed that additional major cost drivers on the lead ship were caused by the inclusion of the new naval vessel rules into the design of the ship without a pause in the construction schedule. Additionally, a necessary component for the propulsion system arrived late to the construction yard changing the most efficient construction sequence for the vessel.

The committee commends the Secretary of the Navy for taking action to identify the issues discussed above; however the committee remains concerned that recent Navy decisions to terminate the option for the third ship may eliminate the benefit of a competitive environment for this program.

The proposed 55 ship class represents a significant portion of the Chief of Naval Operations plan for a 313 ship Navy. If the Secretary cannot maintain affordability in this vital program, the 313 ship fleet cannot be realized. The committee believes it is imperative that the Navy pursue all reasonable means to control costs in the LCS program. The committee believes that a key component of cost control is competition. The committee strongly encourages the Navy to avoid defaulting to a single design acquisition strategy for fiscal years 2008 and 2009 and expects the Navy to take all reasonable steps necessary to ensure continued competition between the two LCS designs.

The committee is convinced that the capability that this vessel will bring to the Navy is of the utmost urgency for responding to asymmetric threats. The committee understands that in order to cover the cost increases of the first three ships, the Secretary intends to submit to Congress an above threshold reprogramming requesting for the appropriations for the two ships authorized in fiscal year 2007. Further, the Secretary has communicated a request that the committee only authorize two of the three ships submitted in the budget for fiscal year 2008.

The committee recommends $710.5 million, a decrease of $200.0 million from the budget request, for the construction of two ships in fiscal year 2008.

The committee directs the Secretary of the Navy to submit a report to the congressional defense committees by August 1, 2007, on the analysis of the root causes of the LCS cost overruns; the methods and procedures put in place throughout the various Program Executive Offices ensuring these mistakes are not repeated in other programs; the structure of the Navy's current contractual agreements with both LCS prime contractors along with justification for differences between the two, if any; an explanation of the Navy's plan for testing of the two different ship variants; and an analysis of alternatives for future procurement and deployment of the LCS.

Premature retirement of Navy vessels

The committee remains concerned that vessels of the U.S. Navy are being retired prior to the end of useful service life. The committee understands that over the past two decades a significant percentage of the capital ships of the Navy have been retired based on cost avoidance decisions for modernization of surface combatants or refueling of submarines.

The committee notes that those decisions have resulted in a current fleet of less than 280 capital ships. The committee strongly believes that future Navy ship classes should be designed and constructed to allow for cost effective upgrades to the ships sensors, communications, and weapons systems as new technologies become available.

The committee directs the Secretary of the Navy to submit a report to the congressional defense committees by October 1, 2007, detailing the vessels that the Navy expects to retire between October 1, 2007, and September 30, 2012, which will not have reached the end of useful service life. This report shall specify why it is in the best interest of the nation to retire any such vessel prior to the end of its useful service life. For the purposes of this report, `useful service life' shall be defined as the projected hull life of the ship class. Additionally, this report shall include the Navy's strategy for future design and construction to ensure that capital ships can be upgraded economically, and are not retired prematurely.

San Antonio Class (LPD)

The budget request contained $1.4 billion for procurement of the ninth and final ship of the San Antonio class LPD.

The committee understands that a tenth ship is the top priority on the Chief of Naval Operations' unfunded priority list. The committee recognizes that authorizing a tenth ship of this class would allow the Marine Corps to more fully meet its requirement for amphibious assault.

The committee recommends $1.4 billion for the ship contained in the budget request and recommends an increase of $1.7 billion, to include advance procurement, for the construction of an additional San Antonio class amphibious assault ship.

Virginia Class Submarine Advance Procurement

The budget request contained $702.7 million for advance procurement of Virginia class submarine construction. The committee understands that the procurement of an additional ship-set of reactor plant components and main propulsion components reduces risk of construction delay and provides savings in the form of increased production orders. Additionally, the committee understands that additional funding allows the shipbuilders to prefabricate major components reducing the overall time of construction.

The committee is aware of the Navy requirement for a force of 48 fast attack submarines, and that the Navy will fall short of that number after the year 2020 under the current shipbuilding plan. The committee is committed to increasing the procurement of Virginia class submarines to two per year prior to the Navy's current plan of increased procurement in fiscal year 2012. The addition of advance procurement for construction of long-lead items such as reactor plant and main propulsion components allows the committee the flexibility to increase the procurement rate of submarines in the coming years.

Therefore, the committee recommends an increase of $588.0 million for the procurement of an additional ship-set of reactor plant, main propulsion, and prefabrication of Virginia class components.

OTHER PROCUREMENT, NAVY

OVERVIEW

The budget request for fiscal year 2008 contained $5.5 billion for Other Procurement, Navy. The committee recommends authorization of $5.4 billion, a decrease of $26.8 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Other Procurement, Navy program are identified in the table below. Major changes to the Navy request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

CVN Propeller Replacement Program

The budget request contained $186.0 million in the category of items under $5.0 million, but contained no funds for the aircraft carrier propeller replacement program.

The committee understands that the original propellers on the Nimitz class aircraft carriers suffer from significant blade erosion caused by cavitation and require refurbishment every three to six years. The new design propeller is resistant to erosion by cavitation and only requires refurbishment every 12 years which most closely approximates major dry-docking availability.

The committee recommends an increase of $3.8 million in the category, items less than $5.0 million, for the aircraft carrier propeller replacement program.

DDG 51 modernization program

The budget request contained $14.5 million for procurement of the highly capable, multi-role AN/SPQ-9B radar.

The committee understands the Navy plans to deploy the AN/SPQ-9B radar during the modernization of the DDG 51 class destroyers and to deploy the radar on the LPD 17, LHD 8, and CVN 78 ship classes.

The committee recommends an increase of $8.0 million for accelerated radar system procurement to reduce risks and meet the delivery requirements for the first DDG 51 modernization.

Envelop protective covers for naval applications

The budget request contained $11.6 million in operating forces support equipment, but contained no funds for the procurement of envelop protective covers.

The committee understands that these covers are currently in use on 160 Navy ships and have significantly reduced corrosion caused by the shipboard environment, thereby decreasing maintenance and increasing readiness.

The committee recommends an increase of $5.0 million in operating support equipment for the procurement of envelop protective covers.

LSD 41 class 60 ton crane upgrades

The budget request contained $186.0 million for items under $5.0 million, but contained no funds for upgrading the crane controls and drives for the four ships of the LSD 41 class.

The committee understands that the 60 ton cranes on the ships of the LSD 41 class are essential to the safe loading and off loading of Marine Corps heavy equipment. The committee further understands that the control systems and drives on these cranes are of an outdated technical design, require continuous maintenance, and are no longer fully supported for spares.

The committee recommends an increase of $4.0 million in items less than $5.0 million for the replacement of the control systems and drives for LSD 42, 44, 47, and 48.

PROCUREMENT, MARINE CORPS

OVERVIEW

The budget request for fiscal year 2008 contained $2.7 billion for Procurement, Marine Corps. The committee recommends authorization of $2.6 billion, a decrease of $118.8 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Procurement, Marine Corps program are identified in the table below. Major changes to the Marine Corps request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Combat Operations Centers

The budget request contained $56.9 million for Combat Operations Center (COC) equipment. In addition, the fiscal year 2008 budget request for ongoing military operations contained $92.4 million for COC equipment.

The committee notes that the Marine Corps COC program provides a capability similar to other Department of Defense programs, including the Navy Deployable Joint Command and Control (DJC2) and Army Tactical Operations Center (TOC) programs. The committee also notes that the Marine Corps received $275.0 million in fiscal year 2007 for the COC program and that the Marine Corps production capacity for this equipment is limited. The committee urges the Marine Corps to coordinate with the Departments of the Navy and Army to procure, where possible, common command post equipment in order to reduce the unit cost of each system and to improve interoperability.

The committee recommends $28.5 million, a decrease of $28.4 million, for COC equipment. The committee notes that additional funding for the COC program is authorized in Title XV of this Act.

Radio systems

The budget request contained $179.9 million for procurement of Marine Corps radio systems. In addition, the fiscal year 2008 budget request for ongoing military operations contained $464.5 million for procurement of radio systems.

The committee notes that the Marine Corps received $876.5 million in fiscal year 2007 for the procurement of radios that, in addition to the recommended fiscal year 2008 funding, will allow the Marine Corps to meet the communications needs for deploying units in 2008. The committee is concerned that despite the dramatic increase in the number of radios planned for procurement that the individual unit cost of these radios has remained flat or has increased. The committee strongly encourages the Marine Corps to negotiate a lower unit price for these radio systems. The committee urges the Marine Corps to conduct a competitive process to procure radios that provide similar capability at a lower unit cost, if a lower price with the current manufacturers of the radios is not achievable.

The committee recommends $90.5 million, a decrease of $90.4 million, for procurement of Marine Corps radio systems. The committee notes that additional funding for radio systems is authorized in Title XV of this Act.

AIRCRAFT PROCUREMENT, AIR FORCE

OVERVIEW

The budget request for fiscal year 2008 contained $12.4 billion for Aircraft Procurement, Air Force. The committee recommends authorization of $12.4 billion, a decrease of $37.0 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Aircraft Procurement, Air Force program are identified in the table below. Major changes to the Air Force request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

AC-130 large aircraft infrared countermeasures

The budget request contained $384.4 million for C-130 modifications, of which $26.9 million was for the procurement and installation of the large aircraft infra-red counter-measures (LAIRCM) system on AC-130 aircraft.

The LAIRCM system consists of ultra-violet missile warning sensors, a missile tracking system, small laser turret assemblies, and processors to detect, track, and counter incoming infra-red (IR)-guided missiles. The committee notes that the LAIRCM system provides a significantly improved defensive capability for large aircraft to counter the IR man-portable air defense system threats, and believes that this capability should be accelerated on the Department of the Air Force's AC-130 fleet. The committee notes that the Air Force Chief of Staff has included the AC-130 LAIRCM among his top ten unfunded priorities for fiscal year 2008.

The committee recommends $389.4 million for C-130 modifications, an increase of $5.0 million for procurement and installation of the LAIRCM system on AC-130 aircraft.

AN/ALQ-213 processor

The budget request contained $683.1 million for other production charges, but contained no funds to complete qualification of an updated AN/ALQ-213 processor.

The AN/ALQ-213 processor is an advanced electronic warfare management system, used on the F-16 and A-10 aircraft, which integrates all on-board self-protection systems such as missile warning systems, chaff and flare dispensing systems, jammers, and towed decoys to reduce pilot workload while conducting combat operations in enemy airspace. The committee understands that the limited processing and memory capacity of the existing AN/ALQ-213 processor impacts the survivability of the F-16 and A-10 fleets, and the committee believes that qualification of an updated AN/ALQ-213 processor should be completed. The committee notes that the Chief of Staff of the Air Force has included the updated AN/ALQ-213 among his unfunded priorities for fiscal year 2008.

The committee recommends $687.0 million, an increase of $3.9 million, for other production charges to complete qualification of an updated AN/ALQ-213 processor.

B-1 bomber modernization

The budget request contained $53.1 million for in-service modification of B-1 aircraft.

According to Air Force officials, the funding request for the B-1 fully integrated data-link (FIDL) modification will not be used as documented in the Air Force justification materials. The Air Force intends to use $18.9 million of these funds for a targeting pod modification unrelated to FIDL. FIDL development delays required the Air Force to delay the start of procurement beyond fiscal year 2008. Further, the fiscal year 2008 budget request for ongoing military operations contained $17.1 million for the targeting pod modification.

The committee recommends $34.2 million, a decrease of $18.9 million, for in-service modification of B-1 aircraft.

B-2 bomber modernization

The budget request contained $316.1 million for in-service modification of B-2 aircraft.

The committee understands that the radar antenna for the B-2 radar modernization program is not meeting performance criteria and has delayed the delivery and installation of the six development radar units needed for flight-testing. The committee notes that data gathered from the testing of these six radar units was supposed to contribute to the completion of design activity, provide an aircrew training capability, and provide test information on reliability and maintainability to support the production decision. The fiscal year 2008 budget request contains procurement of eight radar units. The Air Force does not plan to install three of the eight radar units until fiscal year 2011. The committee notes that based on procurement lead times, delaying procurement of three units until fiscal year 2009 should allow the Air Force to meet the fiscal year 2011 installment schedule without impacting initial operational capabilities.

The committee recommends $216.1 million, a decrease of $100.0 million, for in-service modification of B-2 aircraft due to radar modernization program delays.

B-52

The budget request contained $18.1 million for in-service modification of 56 B-52 aircraft, but contained no funds for the 20 remaining B-52 aircraft in the Air Force aircraft inventory.

The committee understands that the 2006 Quadrennial Defense Review directed the Air Force to reduce the B-52 force to 56 aircraft and use the savings to fully modernize the remaining B-52s, B-1s, and B-2s to support global strike operations. The committee also understands that the current B-52 combat coded force structure of 44 is insufficient to meet combatant commander requirements for conventional long-range strike if there is a need to conduct near simultaneous operations in two major regional conflicts. The committee believes it is premature to retire any B-52 aircraft prior to a replacement long-range strike aircraft reaching initial operational capability status.

Section 131 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) permits the Secretary of the Air Force to retire up to 18 B-52 aircraft, but maintain no less than 44 combat coded B-52 aircraft, beginning 45 days after the Secretary submits to the Senate Committee on Armed Services and the House Committee on Armed Services a report prepared by the Institute for Defense Analyses on the amount and type of bomber force structure required to carry out the National Security Strategy of the United States. Section 131 also prohibits retirement of more than 18 B-52 aircraft until a long-range strike replacement aircraft with equal or greater capability has attained initial operational capability status or until January 1, 2018, whichever comes first.

The committee understands that the Air Force plans to modernize and upgrade only 56 of the total 76 B-52 aircraft in the inventory. The committee strongly opposes a strategy to reduce capability in present day conventional long-range strike capability without a replacement platform. The replacement platform is not projected to achieve initial operational capability until well into the future.

The committee recommends $38.1 million, an increase of $20.0 million, for in-service modification of 76 B-52 aircraft and recommends the Air Force to request the fiscal resources necessary to similarly modernize and upgrade 76 B-52 aircraft in future fiscal year budget requests.

C-5 small arms protective armor

The budget request contained $332.0 million for modification of in-service C-5 aircraft, but contained no funds for C-5 small arms protective armor.

The committee understands that intelligence threat reporting and aircraft incidents indicate an urgent need to equip the C-5 aircrew cockpit, liquid-oxygen bottle, and troop door with protective armor. Installation of armor protection will increase aircrew and aircraft survivability against the small arms fire threat and will meet a U.S. Central Command area of responsibility requirement that all aircraft operating in specified zones be outfitted with small arms protective armor.

The committee recommends $336.7 million, an increase of $4.7 million, for equipping C-5 aircraft with small arms protective armor.

F-16 block 42 engine upgrades

The budget request contained $329.4 million for F-16 modifications, but contained no funds for F-16 block 42 F100-PW-229 engine upgrades for the Air National Guard (ANG).

The committee notes that, without an engine upgrade, the ANG's F-16 block 42 aircraft are underpowered compared to F-16 block 40, block 50, and block 52 aircraft, reducing their combat effectiveness. The committee understands that 31 of the ANG's 48 F-16 block 42 aircraft have been upgraded with the F100-PW-229 engine; and notes that this engine upgrade provides a twenty percent thrust increase, and improved durability, reliability, survivability, and speed. The committee believes that the ANG's F-16 block 42 aircraft fleet should continue to be upgraded with the F100-PW-229 engine.

The committee recommends $358.8 million for F-16 modifications, an increase of $29.4 million, for four F100-PW-229 engine upgrades for the ANG's F-16 block 42 fleet.

Joint cargo aircraft

The budget request contained $42.4 million for Air Force development and procurement of the joint cargo aircraft and $163.4 million for Army development and procurement of the joint cargo aircraft.

The committee understands that the Army initiated the future cargo aircraft program to fill an operational gap identified by the Army to support an organic, time-sensitive cargo mission that is not adequately being filled by any currently fielded system. The committee understands that the Air Force initiated its light cargo aircraft program to more efficiently execute the intra-theater airlift cargo mission and supplement its current portfolio of airlift aircraft. The committee notes that the Army and the Air Force signed a Memorandum of Understanding on June 16, 2006, regarding merging the two programs into a new program called the Joint Cargo Aircraft.

The committee understands that the Joint Chiefs of Staff is currently conducting the Joint Intra-Theater Lift Capabilities Study and the Joint Intra-Theater Distribution Assessment. The committee understands that the Air Force is conducting a Functional Area Series Analysis, a Joint Cargo Aircraft Analysis of Alternatives, and the Air Mobility Command Mobility Roadmap. The committee understands that these studies are essential in identifying effective and efficient intra-theater airlift operations that should support all intra-theater airlift requirements of the military services.

The committee is extremely concerned that progressing with development and procurement of an additional cargo aircraft program to support intra-theater airlift requirements within the Department of Defense without completion of the relevant studies will prohibit informed decision-making, could invoke unnecessary duplication of effort and expenditure of fiscal resources, and may infringe upon the separate roles, missions, and core capabilities of the military services.

The committee included a provision (section 132) of this Act that would prohibit the Secretary of the Air Force or the Secretary of the Army from obligating or expending authorized appropriations for the development or procurement of the Joint Cargo Aircraft until 30 days after the Secretary of Defense submits to the congressional defense committees the Air Force Air Mobility Command's Airlift Mobility Roadmap; the Department of Defense Intra-Theater Airlift Capabilities Study; the Department of Defense Joint Intra-Theater Distribution Assessment; the Joint Cargo Aircraft Functional Area Series Analysis; the Joint Cargo Aircraft Analysis of Alternatives; and the Secretary of Defense certifies that validated operational requirements exist to fill a Department of the Army, Department of the Air Force, Army National Guard, or Air National Guard capability gap or shortfall for intra-theater airlift with the Joint Cargo Aircraft.

KC-135R global air traffic management system

The budget request contained $118.6 million for modification of in-service C-135 aircraft, containing $103.3 million for the global air traffic management (GATM) system installation kit.

The committee understands that the GATM upgrade is required for all KC-135 aircraft to operate unrestricted within transoceanic airspace allocations where reduced horizontal separations are implemented. Accelerating installation of GATM should ensure that KC-135 aircraft can meet all assigned missions.

The committee recommends $128.5 million for modification of in-service C-135 aircraft, an increase of $9.9 million for procurement of six additional GATM kits.

Senior scout shelter

The budget request contained $384.4 million for C-130 modifications, containing $3.9 million for change orders to update three C-130 senior scout shelters, but contained no funds for procurement of a fourth mission shelter for the senior scout system.

The senior scout system is a roll-on and roll-off suite of equipment, configured in a shelter system, and used on specially-configured C-130 aircraft to perform intelligence, surveillance, and reconnaissance (ISR) missions. The committee notes that senior scout systems have been deployed continuously since September 11, 2001, because of their exceptional ISR capabilities and small footprint. The committee believes that an additional senior scout mission shelter is needed to meet operational demands.

The committee recommends an increase of $7.0 million for a fourth mission shelter for the senior scout system.

Strategic airlift aircraft

The budget request contained $260.6 million for C-17 aircraft procurement support items, but no funds were included for additional C-17 aircraft.

The committee notes that the Commander, U.S. Transportation Command and the Commander, Air Mobility Command, both testified before the House Committee on Armed Services on March 2, 2006, that no more than 20 C-17s, in addition to the former program of record of 180 C-17s, are needed to meet both the inter-theater and intra-theater airlift requirements, and provide a recapitalization solution for older C-17s being used at a higher than planned utilization rate. The Chief of Staff of the Air Force included $472.8 million for two C-17 aircraft and $280.0 million for C-17 production line shutdown funding on the Air Force's Unfunded Priority List submitted to the committee.

Additionally, the committee received a briefing from Air Force officials which explained that the cost savings garnered from retiring 30 C-5A aircraft and procuring 30 C-17 aircraft could be roughly equivalent in cost and that pursuing this course of action could increase operational flexibility of combatant commanders and improve the overall strategic airlift mobility capability of the United States Transportation Command. However, the committee notes that in the business case analysis briefed to the committee pursuing this option, the Air Force could not use actual cost estimates for the C-5 Reliability Enhancement and Re-engining Program (RERP), actual unit cost estimates for additional C-17 aircraft, actual costs for personnel or military construction, or actual flying hour costs because these were still under review by Air Force officials.

Regardless of the Air Force position that there is near financial neutrality of retiring 30 C-5As and procuring 30 C-17s, the committee is concerned that a minimum of 299 strategic airlift aircraft may not be sufficient to meet future airlift requirements and supports procurement of at least 10 additional C-17s beyond the 190 aircraft program of record given the dilapidated condition of the C-130E/H fleet of aircraft, the lack of well defined inter-theater and intra-theater airlift requirements for the Army's modularity and Future Combat Systems operational concepts, the personnel end strength increases of both the Army and Marine Corps, the increased use of the C-17 tasked for the intra-theater airlift mission, and the uncertainty associated with C-5 modernization testing and possible cost growth.

The committee recommends $2.4 billion in title XV of this Act, an increase of $2.4 billion for procurement of 10 additional C-17s. Additionally, the committee directs the Secretary of the Air Force to apply the $37.3 million of shutdown costs in the budget request towards the procurement of these additional C-17s, and strongly encourages the Secretary to program out-year funding for additional C-17 aircraft in subsequent budget requests if the Air Force plans to pursue the option of retiring C-5A aircraft and procuring additional C-17 aircraft.

The committee also includes in a provision in Title I of this Act that would allow the Secretary of the Air Force to retire C-5A aircraft from the inventory and replace the capability with C-17 aircraft if the cost analysis performed is prudent in meeting strategic airlift requirements and does not significantly increase overall costs above those already planned in the out-years. Before C-5A retirement can commence, the Secretary must submit to the congressional defense committees a cost analysis that evaluates retiring C-5A aircraft and procuring C-17 aircraft versus performing the Avionics Modernization Program and RERP on C-5A aircraft is more prudent in meeting strategic airlift mobility requirements; submit certification that the Department can comply with the minimum strategic airlift inventory requirement of 299 aircraft by October 1, 2008, section 8062(g) of title 10, United States Code; and, submit certification that operational risk will not significantly increase in meeting the National Military Strategy objectives by retiring C-5A aircraft and procuring additional C-17 aircraft. The committee understands that the Air Force should have a minimum of 299 strategic airlift aircraft in the inventory with delivery of the 189th C-17 in June 2009.

Consequently, the committee understands that no C-5A retirements will occur before the delivery of the 189th C-17. This should provide adequate time for the committee and the Secretary of the Air Force to both reconsider minimum airlift needs and to fully evaluate the operational efficiencies involved in replacing C-5A aircraft with C-17 aircraft. Additionally, the committee notes that after section 8062(g) of title 10, United States Code, was implemented with the John Warner National Defense Authorization Act for Fiscal Year 2007, the C-17 delivery schedule changed due to additional C-17 foreign military sales which could impact the Secretary of the Air Force complying with section 8062(g) of title 10, United States Code.

Study on procuring F-35 aircraft for Air National Guard units

The committee notes that some Air National Guard (ANG) units currently equipped with F-16 and F-15 aircraft provide homeland defense by conducting combat air patrol missions for high-value areas of the United States. Further, the committee notes that the existing fleets of F-15 and F-16 aircraft are aging, and that the F-35 aircraft will eventually assume F-16 missions when F-16s are retired.

To address the prospect of continuing the homeland defense combat air patrol mission when fleets of F-16s and F-15s are retired, the committee directs the Secretary of the Air Force, in consultation with the Chief of the National Guard Bureau and the Secretary of Homeland Security, to conduct a study on the feasibility and desirability of procuring F-35 aircraft for those ANG units that are responsible for providing homeland defense combat air patrol missions for high-value areas of the United States. The Secretary of the Air Force shall submit a report with the results and conclusions of this study, including any other information that the Secretary considers appropriate, to the congressional defense committees by October 1, 2008.

AMMUNITION PROCUREMENT, AIR FORCE

OVERVIEW

The budget request for fiscal year 2008 contained $868.9 million for Ammunition Procurement, Air Force. The committee recommends authorization at budget request level of $868.9 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Ammunition Procurement, Air Force program are identified in the table below. Major changes to the Air Force request are discussed following the table.

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MISSILE PROCUREMENT, AIR FORCE

OVERVIEW

The budget request for fiscal year 2008 contained $5.1 billion for Missile Procurement, Air Force. The committee recommends authorization of $5.1 billion, an increase of $7.0 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Missile Procurement, Air Force program are identified in the table below. Major changes to the Air Force request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

General information technology

The budget request contained $113.3 million for general information technologies, but contained no funds for the science and engineering lab data integration (SELDI) program, or for information modernization for processing with advance coating technologies (IMPACT).

The Air Force Material Command's science and engineering lab captures, analyzes, and disseminates lab test data to the Department of the Air Force's engineering and system overhaul operations. The SELDI program facilitates this mission by providing a maintenance and logistics information management tool that allows more rapid lab data access affecting overhaul operations; provides accident investigators with immediate access to lab results of failed components; enables component failure trend analysis; and implements a new acoustic signature sensor to ensure the proper chemical composition of materials and equipment. The committee understands that the SELDI program has provided quantifiable benefits including cost avoidance of $10.0 million per year in spare parts configuration discrepancies, and elimination of unnecessary landing gear overhaul process operations at a savings of $3.6 million per year. In the committee report (H. Rept. 108-491) accompanying the National Defense Authorization Act for Fiscal Year 2005 and in the committee report (H. Rept. 109-89) accompanying the National Authorization Act for Fiscal Year 2006, the committee recommended increases for the SELDI program and continues to believe its implementation would improve operational aircraft readiness, increase flight safety, and reduce support costs. Accordingly, the committee recommends an increase of $2.0 million for this purpose.

As a result of much more stringent permissible exposure limits to chemical byproducts of chrome plating processes, Warner Robins Air Logistics Center (WR-ALC) will be required to migrate to a new process known as advanced coating systems. The committee understands that the advanced coating systems process will offer improved durability and lower life-cycle costs for those components treated with this process. The IMPACT program is working to calibrate, validate, and certify the existing thermal spray equipment used in the advanced coating systems process, and identifying candidate parts that could be overhauled with this process. To accelerate the IMPACT program, the committee recommends an increase of $2.0 million for this purpose.

The committee recommends $117.3 million, and increase of $4.0 million, for general information technology.

Hawaii Air National Guard Eagle Vision

The budget request contained $24.1 million for intelligence communications equipment, but contained no funds to procure a one-meter synthetic aperture radar (SAR) imagery system. This includes software upgrades for the Hawaii Air National Guard's (HANG) Eagle Vision program.

The HANG Eagle Vision program is a family of systems that provide commercial imagery data to operational commanders for mission planning and intelligence support purposes. The committee understands that the Eagle Vision one-meter SAR imagery system will allow the HANG to respond to natural or man-made disasters, military contingencies, maritime surveillance, and search and rescue operations throughout the U.S. Pacific Command's (USPACOM) area of responsibility, and believes this capability is necessary to meet USPACOM mission requirements.

The committee recommends $27.6 million for intelligence communications equipment, an increase of $3.5 million to procure a one-meter SAR imagery system, this includes software upgrades for the HANG Eagle Vision program.

Lightweight inflatable decontamination system

The budget request contained no funds for the lightweight inflatable decontamination system (LIDS).

The committee is aware that the Air National Guard (ANG) has an immediate requirement for additional decontamination systems and believes that LIDS is a tested and qualified system that is readily available to address this critical requirement.

The committee recommends $4.9 million for additional LIDS procurement for the ANG.

Rescue streamer distress signal kit

The budget request contained no funds for personal safety and rescue equipment items less than $2.0 million, or for the rescue streamer distress signal kit for the Air National Guard (ANG).

The rescue streamer distress signal kit provides a variety of streamers including those attached to ejection seats, life rafts, and aircrew equipment vests. The committee believes that this system assists in more rapidly locating and recovering downed crew members and that it should be installed on ANG aircraft and provided to ANG aircrew personnel.

The committee recommends an increase of $2.5 million to procure rescue streamer distress signal kits for the ANG.

Terminal radar approach control switchgear and quick connect panel

The budget request contained $17.4 million for base procured equipment, but contained no funds for a terminal radar approach control (TRACON) switchgear and quick connect panel for the Air Force Flight Test Center (AFFTC).

The committee understands that the AFFTC TRACON facility operates with a forty-year old electrical switching device, which, if it failed, would render the TRACON facility without power and halt flight operations until replacement of the switching device. The committee also understands that the AFFTC TRACON facility operates without a quick connect panel to immediately provide emergency generator power in the event of an electrical power outage.

The committee recommends $18.1 million for base procured equipment, an increase of $0.7 million, to replace the existing switchgear system, and to procure a quick-connect panel for a portable emergency generator.

PROCUREMENT, DEFENSE-WIDE

OVERVIEW

The budget request for fiscal year 2008 contained $4.9 billion for Procurement, Defense-Wide. The committee recommends authorization of $5.0 billion, an increase of $119.0 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Procurement, Defense-Wide program are identified in the table below. Major changes to the Air Force request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

MH-47G Reconstitution

The budget request contained $61.3 million for the MH-47 service life extension program (SLEP) managed by U.S. Special Operations Command (USSOCOM), but did not contain the level of funding necessary to maintain the full complement of reconstituted aircraft in the fleet through fiscal year 2011.

The committee notes that USSOCOM has a requirement for 61 highly specialized MH-47 aircraft and continues to fund a SLEP with the objective to extend the average life of each aircraft an additional 20 years. The committee is aware that two MH-47s were lost in 2006, one during a pre-deployment training accident and another in Operation Enduring Freedom. The committee recognizes the crucial, high-demand nature of these aircraft, and supports efforts to fully meet the logistical requirements of Special Operations Forces, and remains committed to a program that will sustain a fleet of 61 upgraded aircraft.

Therefore, the committee recommends an increase of $43.9 million to reconstitute two additional MH-47 aircraft.

Night Vision Devices

The budget request contained $160.1 million for small arms and weapons. Of this amount, the request contained $18.4 million for night vision devices (NVDs). The committee is aware of recent advances in night vision technology and the potential to significantly improve tactical sensor capabilities available to special operators in the field. The committee understands that such developments offer the potential fielding of NVDs with dramatically improved fields of view as well as with counter-NVDs or `counter electro-optic' technologies. The committee supports accelerated efforts to field these technologies and recommends an increase of $20.0 million for night vision devices.

Special Operations Craft-Riverine

The budget request contained $17.0 million for Special Operations Forces (SOF) combatant craft systems, containing $4.1 million for the Special Operations Craft-Riverine (SOC-R) replacement program.

The committee recognizes the SOC-R provides a unique capability for confronting the demands of counterterrorist and counternarcotics missions. The committee is aware that U.S. Special Operations Command maintains a fleet of 20 vessels but is concerned that the current acquisition plan will fail to adequately sustain the fleet at its present level in the future.

Therefore, the committee recommends $26.0 million, an increase of $9.0 million, for the SOC-R replacement program.

Special Operations Forces Personnel Equipment Advanced Requirements

The budget request contained $160.1 million for small arms and weapons, containing $62.0 million for Special Operations Forces (SOF) Personal Equipment Advanced Requirements (SPEAR).

The committee commends initiatives to improve individual protection for special operators and urges further efforts in this area. One area the committee recognizes as deserving attention is the effort to field the Modular Supplemental Armor Protection (MSAP), an individual body armor system offering superior protection against small arms threats. The committee understands U.S. Special Operations Command (USSOCOM) is aware of the superior protection provided by MSAP, especially in the neck, sides, and groin area of each special operator. The committee notes the existence of a USSOCOM unfunded requirement for more than 7,100 MSAP units and supports efforts to field this additional capability in an expeditious manner.

The committee also recognizes USSOCOM's effort to improve SPEAR Eye Protection for special operators. The committee notes that the current requirement is only partially funded and understands that a fully funded requirement would significantly improve self-protection measures for operators in the field.

The committee recommends an increase of $12.1 million for the procurement of MSAP units and $5.0 million increase for Special Operations Eye Protection, USSOCOM's top two unfunded requirements in fiscal year 2008.

Joint Intelligence Operations Centers

The establishment of the Joint Intelligence Operations Centers (JIOCs) was one of the key elements of remodeling Defense Intelligence selected by the Under Secretary of Defense for Intelligence (USD(I)) to operationalize intelligence for the combatant commanders. The committee commends this initiative to achieve intelligence fusion, analysis and dissemination, but remains concerned that the effectiveness of the JIOCs are being diluted by the proliferation of disparate intelligence fusion efforts throughout the department.

Therefore, the committee directs the USD(I) to submit an assessment of JIOC implementation. This assessment shall include the JIOC relationship to other intelligence and operational fusion centers in combat theaters and lessons learned from the establishment of each JIOC categorized by combatant command. This assessment shall also include documentation by the respective combatant commander as to the degree the commanders intelligence requirements are being satisfied by the JIOC implementation. This assessment shall be submitted to the congressional defense committees by November 1, 2007.

Persistence intelligence surveillance and reconnaissance

The committee notes that the military services have clearly stated the requirement for wide field-of-view (WFOV) persistent surveillance (PS). The committee notes that there are two WFOV/PS programs underway to offer battalion level WFOV/PS intelligence, surveillance, and reconnaissance (ISR) to commanders to plan and execute combat operations. The committee is satisfied with the progress and proof of concept demonstrated on both the Army's Constant Hawk program and the Marine Corps Angel Fire demonstration. Although each of these programs is supporting slightly different missions, the committee believes that these programs can be merged into a single WFOV/PS ISR activity, and that the best of each program can be incorporated into a single operational capability, while ensuring that the information collected can be accessed in a manner that best meets the needs of the end user.

Therefore, the committee strongly recommends that the Under Secretary of Defense for Intelligence provide guidance to the Departments of the Army and Navy that these two WFOV/PS ISR programs be merged to ensure the capability is deployed to support operations as efficiently as possible. Furthermore, the committee recommends that all funding be used to improve the infrastructure, communications paths, bandwidth, processing tools, exploitation tools, and to support WFV/PS ISR for other ISR programs.

PROCUREMENT, NATIONAL GUARD AND RESERVE

OVERVIEW

The budget request for fiscal year 2008 contained $1.1 billion for the procurement of National Guard and Reserve Component equipment.

The committee recommends an increase of $500.0 million for the procurement of critical, high-priority miscellaneous equipment to include aircraft, missiles, wheeled and tracked combat vehicles, tactical wheeled vehicles, ammunition, other weapons, and other procurement to address National Guard and reserve component unfunded equipment shortfalls.

The committee notes that the events of September 11, 2001, Operation Iraqi Freedom (OIF), and Operation Enduring Freedom (OEF) have caused dramatic changes in how National Guard and reserve components are used to support overseas operational missions and domestic security and preparedness tasks. The National Guard is no longer a strategic reserve component but is now considered an operational force. The extended commitment of the National Guard and reserve components to meet wartime requirements of OIF and OEF has exposed longstanding pre-September 11, 2001 wartime-related equipping, manning, resourcing and policy issues that must be considered a top priority of the Department of Defense. The committee is aware that personnel, equipment, and training readiness for the National Guard and reserve components have fallen dramatically since 2001 and feels this is an unacceptable situation.

The committee is aware this budget request provides a significant increase in procurement funding for National Guard and reserve component equipment from previous budget requests; however, the committee notes that despite this increase in funds, significant equipment shortfalls still exist for many National Guard and reserve component units. The committee is aware the Army National Guard has only 40 percent of its required equipment in the continental United States. The committee understands the Chief of Staff of the National Guard Bureau has submitted a $2.0 billion unfunded requirement for equipment for fiscal year 2008.

The committee strongly encourages the Secretary of Defense to work closely with the congressional defense committees to generate an effective resourcing plan to address these critical readiness shortfalls of the National Guard and reserve components.

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LEGISLATIVE PROVISIONS

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

SECTIONS 101-104--AUTHORIZATION OF APPROPRIATIONS

These sections would authorize the recommended fiscal year 2007 funding levels for all procurement accounts.

SECTION 105--NATIONAL GUARD AND RESERVE EQUIPMENT

This section would authorize $500.0 million for the procurement of aircraft, missiles, wheeled and tracked combat vehicles, tactical wheeled vehicles, ammunition, other weapons, and other procurement for the National Guard and Reserve Components.

SUBTITLE B--ARMY PROGRAMS

This section would authorize the Secretary of the Army to enter a multiyear procurement contract in accordance with section 2306b if title 10, United States Code, for up to five years for M1A2 Abrams SEP tanks.

This section would authorize the Secretary of the Army to enter a multiyear procurement contract in accordance with section 2306b of title 10, United States Code, for up to four years for three different models of the Bradley Fighting Vehicle.

This section would authorize the Secretary of the Army to enter a multiyear contract in accordance with section 2306b of title 10, United States Code, beginning with the fiscal year 2008 program year, for the conversion of CH-47D helicopters to the CH-47F configuration.

SECTION 114-MULTIYEAR PROCUREMENT AUTHORITY FOR CH-47F HELICOPTERS

This section would authorize the Secretary of the Army to enter a multiyear contract in accordance with section 2306b of title 10, United States Code, beginning with the fiscal year 2008 program year, for procurement of CH-47 helicopters in the CH-47F configuration.

SECTION 115--LIMITATION ON USE OF FUNDS FOR JOINT NETWORK NODE PROGRAM PENDING CERTIFICATION TO CONGRESS

This section would limit the amount of funding that can be obligated or expended from funds appropriated or otherwise made available for the Joint Network Node (JNN) program in fiscal year 2008 to 50 percent of the total amount appropriated until the Secretary of the Army certifies that (1) the JNN program is an official program of record in accordance with Department of Defense Instruction 5000.2, `Operation of the Defense Acquisition System,' May 12, 2003; (2) that the Director, Operational Test and Evaluation has approved a plan for a JNN operational test and evaluation; and (3) the Army plans to seek competitive bids for all future lots of JNN equipment.

SECTION 116--PROHIBITION ON CLOSURE OF ARMY TACTICAL MISSILE SYSTEM PRODUCTION LINE PENDING REPORT

This section would prohibit the obligation or expenditure of any funds appropriated or otherwise made available in fiscal year 2008, or any other funds available to the Secretary of the Army, toward any costs associated with shutting down the Army Tactical Missile System production line until the Secretary of the Army submits to the congressional defense committees with a report that (1) certifies that the long range strike and counter battery mission can be adequately performed by the other services; (2) details the Army's plan to mitigate any shortfalls in the industrial base that are created by the closing of the ATACMS production line; and (3) specifies the Army's plans to replace its capability to perform long range surface-to-surface strike and counter battery missions.

The committee is concerned that a termination of the ATACMS production line will leave a gap in the Army's capability for deep strike surface-to-surface operations in future years. As the Army's sole long range surface-to-surface missile system, ATACMS provides unique capabilities in its 270 kilometer range and effectiveness in counter-battery missions, that no other current Army system can provide. There are currently no plans to produce a replacement system for these capabilities that the Army will lose as it expends the remaining missiles in inventory.

Therefore, this section would require the Secretary of the Army to submit a report to the congressional defense committees by April 1, 2008, and that no funds will be appropriated or otherwise made available until 120 days after this report is submitted. Further, production of ATACMS missiles shall continue until this report is delivered.

SUBTITLE C--NAVY PROGRAMS

This section would authorize the Secretary of Defense to transfer up to $20.0 million from any appropriation account to the Shipbuilding and Conversion, Navy, account, for unanticipated or emergent maintenance or repair requirements discovered during the conduct of the submarine or aircraft carrier refueling overhaul providing the maintenance or repair requirements are necessary to return the vessel to full operational capability at the conclusion of the overhaul.

The committee understands that the Navy carefully plans the funding requirements to conduct submarine and aircraft carrier refueling overhauls, but that additional maintenance or repair requirements identified during the conduct of the overhauls are not always performed due to the limitations of funding authorized and appropriated for the overhaul. The committee understands that correction of the identified maintenance or repair requirement in subsequent maintenance availability incurs additional cost to the government than would have occurred if the maintenance or repair had been completed during the original overhaul.

This section would require the Secretary to notify the congressional defense committees when funds have been transferred under this section along with an explanation of the maintenance or repair requirement discovered during the conduct of the overhaul.

This section would allow the Secretary of the Navy to enter a multiyear procurement contract in accordance with section 2306b of title 10, United States Code, beginning with the program year starting in fiscal year 2009, for additional Virginia-class submarines.

SECTION 123--LIMITATION ON FINAL ASSEMBLY OF VH-71 PRESIDENTIAL TRANSPORT HELICOPTERS

This section would limit the obligation or expenditure of funds, pursuant to an authorization of appropriations, for the final assembly of more than five VH-71 presidential transport helicopters; however, this limitation would not apply if the final assembly of the helicopter is carried out in the United States.

This section would prohibit the use of fiscal year 2008 funds for operational deployment of the weapons system that uses converted Trident missiles to carry conventional payloads. Further, this section would require the Secretary of Defense to submit written notification to the congressional defense committees within 30 days of the date on which the Secretary determines that the system is fully functional and fielding is necessary to meet military requirements.

This section would permit the Secretary of the Navy to carry out a program providing capital expenditure incentives for contractors in the shipbuilding industry. This section would authorize the Secretary to use funds in the Shipbuilding and Conversion, Navy, account to invest in infrastructure, process, or training improvements when such an investment would be beneficial to the government and lower overall costs of ship construction programs.

The committee believes that the rising cost of ship construction can be mitigated by improvements in efficiency at the construction yards and major subcontractors. The committee believes the most significant gains in efficiency are derived from capital investment in state of the art manufacturing equipment that both improves quality of the finished product and reduces the labor hours required.

This section would require the Secretary to annually report on the capital investment projects awarded, the costs associated with the project, and the anticipated savings to be derived from the project.

SECTION 126--LIMITATION ON USE OF SHIPBUILDING AND CONVERSION, NAVY, FUNDS FOR EMPLOYMENT OF NONIMMIGRANT WORKERS

This section would prohibit the use of shipbuilding and conversion, Navy, funds for the purpose of construction of a Navy vessel at a construction facility where the contractor employs or contracts for foreign workers who are legally present in the United States under the H2B visa program. This section would allow for an exception to the above requirement if the contractor certifies that it has fully complied with all existing laws and regulations in regards to the H2B visa program, and that the contractor has attempted to recruit U.S. shipyard workers in geographical areas that the Secretary of the Navy has identified may have potential labor surpluses within the next five years. This section would also require the Secretary of the Navy to identify such shipyards in the annual naval vessel construction plan, required by section 231 of title 10, United States Code.

SECTION 127--LIMITATION ON CONCURRENT DESIGN AND CONSTRUCTION ON FIRST SHIP OF A SHIPBUILDING PROGRAM

This section would require the Secretary of the Navy to certify to the congressional defense committees that research and development, detailed design, and contractor preparedness are mature prior to the start of construction of the first ship in a new class of vessels, the first ship to be built at a shipyard, or the first vessel after a major design change, characterized as a change in flight.

SUBTITLE D--AIR FORCE PROGRAMS

SECTION 131--LIMITATION ON RETIRING C-5 AIRCRAFT

This section would allow the Secretary of the Air Force to retire C-5A aircraft from the inventory and replace the capability with C-17 aircraft if the cost analysis performed is prudent in meeting strategic airlift requirements and does not significantly increase overall costs above those already planned in the out-years. Before C-5A retirement can commence, the Secretary must submit to the congressional defense committees a cost analysis performed by a Federally Funded Research and Development Center that evaluates retiring C-5A aircraft and procuring C-17 aircraft versus performing the Avionics Modernization Program and the Reliability Enhancement and Re-engining Program on C-5A aircraft is more prudent in meeting strategic airlift mobility requirements; submit certification that the Department can comply with the strategic airlift inventory requirement of 299 aircraft by October 1, 2008, section 8062(g) of title 10, United States Code; and, submit certification that operational risk will not significantly increase in meeting the National Military Strategy objectives by retiring C-5A aircraft and procuring additional C-17 aircraft.

SECTION 132--LIMITATION ON JOINT CARGO AIRCRAFT

This section would prohibit the Secretary of the Air Force or the Secretary of the Army from obligating or expending authorized appropriations for the development or procurement of the Joint Cargo Aircraft until 30 days after the Secretary of Defense submits to the congressional defense committees the Air Force Air Mobility Command's Airlift Mobility Roadmap; the Department of Defense Intra-Theater Airlift Capabilities Study; the Department of Defense Joint Intra-Theater Distribution Assessment the Joint Cargo Aircraft Functional Area Series Analysis; the Joint Cargo Aircraft Analysis of Alternatives; and the Secretary of Defense certifies that validated operational requirements exist to fill a Department of the Army, Department of the Air Force, Army National Guard, or Air National Guard capability gap or shortfall for intra-theater airlift with the Joint Cargo Aircraft.

SECTION 133--CLARIFICATION OF LIMITATION ON RETIREMENT OF U-2 AIRCRAFT

This section would amend section 133 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) requiring the Secretary of Defense to conduct an annual review of the U-2 and Global Hawk transition plan and an assessment of the migration of U-2's intelligence, surveillance, and reconnaissance capabilities to the Global Hawk platform, highlighting any potential gaps in capability. This section would also require the Secretary of Defense to present the findings to Congress and concurrence the U-2 is no longer needed, by April 1st each year until the transition is complete.

ITEMS OF SPECIAL INTEREST

Active Protection Systems

The committee recognizes the need for future military ground vehicles to incorporate active protection technologies due to the increasing array and capability of anti-vehicle combat systems. The committee is aware that both domestic and foreign producers offer a wide range of active protection systems (APS) using various technologies. The committee urges the Department of Defense to pursue multiple APS development paths due to the diversity of the threats that ground vehicles will face in the future. In addition, due to the non-linear nature of the battlefield in Operation Iraqi Freedom and Operation Enduring Freedom today, the committee supports APS research that seeks to develop protection for light and wheeled vehicles, as well as heavier armored combat platforms.

Advanced lightweight armor materials

The budget request contained $18.6 million in PE 62105A for materials technology.

The programs under this account aim to model, characterize, and incorporate lightweight materials, structures, and processing technologies to enhance survivability of future ground combat vehicles and individual soldier systems.

The committee recommends an increase of $6.0 million in PE 62105A for the development of advanced lightweight armor materials to accelerate work in improving the multi-functional performance capability and survivability of combat vehicles.

Aerial Common Sensor

The budget request contained $26.4 million in PE 23744A for the Department of the Army aerial common sensor (ACS) and contained $16.6 million in PE 35207N for the Department of the Navy's Aerial Common Sensor (ACS) programs.

The committee recognizes that the nation requires the recapitalization of the legacy aerial reconnaissance-low (ARL), RC-12 Guardrail Common Sensor (GRCS), and EP-3 programs in order to succeed in current military operations, provide support to national decision makers, and keep apace of the strategic threat. The committee notes that this is the Army's second and the Navy's third attempt in recapitalizing these critical systems. Over $249.0 million has been expended on failed ACS programs. After most recently attempting to execute a joint program, each service has decided to develop its own capability.

The committee believes that the Army ACS program continues to lack definition and therefore a budget request of this magnitude is premature. The committee is concerned that previously funded ACS efforts in sensor development, performance modeling, intelligence, surveillance, and reconnaissance (ISR) integration and operational concepts have not been fully incorporated into the restructured program. The committee notes that the current definition does not account for the Department's validated military ISR requirements or integrated architectures.

The committee directs the Secretary of the Navy to initiate a program new start for the EP-3 replacement, EP-X, in this fiscal year, and transfer remaining funds from the ACS programs to the new EP-X program element.

The committee cautions the Departments of the Army and Navy that the ACS program of record must consider common mission systems and consider platforms already in the individual services' inventory. The committee encourages risk mitigation of the ACS program through the reuse of technical data available from the cancelled contract.

The committee recommends $21.4 million, a decrease of $5.0 million, in PE 23744A for the Department of the Army ACS program, and $12.6 million in PE 35207N, a decrease of $4.0 million, for the Department of the Navy ACS program.

Army missile defense systems integration

The budget request contained $14.4 million in PE 63305A for Army missile defense systems integration.

The committee recommends an increase of $7.0 million in PE 63305A. Of the increased amount, $2.0 million is for the continued development of integrated composite mounting hardware for use within missile defense interceptors and $5.0 million is for the advanced hardening initiative.

Cable warning and obstacle avoidance system

The budget request contained $35.9 million in PE 63710A for night vision advanced technology, but contained no funding for the cable warning and obstacle avoidance system.

The committee understands that wires, cables, and other obstacles are a major threat to low flying military aircraft during training and combat operations. Helicopter operations often are required at a very low altitude during periods of reduced visibility caused by a variety of environmental conditions. The committee is aware that an all-weather millimeter wave-imaging radar helicopter demonstration has shown promising results for providing the required warning to helicopter crews. However, additional development is required to increase the field of view, extend the wire detection range, and adapt the system for the helicopter vibration environment.

The committee recommends an increase of $3.0 million in PE 63710A to complete development of an all-weather cable warning and obstacle avoidance system for helicopters and to demonstrate an operational prototype.

Common Remote Operating Weapon Station

The budget request contained $45.2 million in PE 64601A for infantry support weapons; but contained no funds for the integration of the Javelin anti-tank missile onto the common remote operating weapon station (CROWS).

The CROWS system is a vehicle mounted, stabilized remote weapon station system that provides day and night target detection, recognition, and engagement at long distances while allowing the soldier to remain protected by an armored vehicle, accurate shoot on-the-move capability, and one shot-one-hit accuracy that minimizes collateral damage. The committee is aware CROWS has proven its capability successfully and effectively in Operation Iraqi Freedom. The committee understands developmental efforts are underway to integrate Javelin anti-tank missiles into the CROWS system. The committee believes this program could act as a combat multiplier for Army light infantry brigade combat teams performing unconventional or reconnaissance missions.

The committee recommends an increase of $5.4 million in PE 64601A to complete the integration of the Javelin anti-tank missile onto CROWS systems for operational test and evaluation.

The committee supports the completion of the development of the digital array radar in order to validate the technology to support battlefield radar requirements. The committee also supports advanced digital transceiver dual-use development for phased array missile, early warning, weather, and air traffic control purposes.

The committee recommends an increase of $4.0 million in PE 63772A to complete development and test digital array radar prototype antenna technology and $5.0 million in PE 63772A for phased array radar transceiver integrated circuit development.

Enhanced flame retardant clothing systems

The budget request contained $45.2 million in PE 64601A for infantry support weapons, containing $9.7 million for projects involving state-of-the-art individual clothing and equipment to improve the survivability and mobility of the individual soldier; however, the request contained no funds for enhanced flame retardant (FR) clothing systems.

The committee understands there is a need for enhanced FR clothing systems that would provide force protection to the warfighter from severe burns resulting from incendiary improvised explosive devices used in Operation Iraqi Freedom as well as protect the warfighter from enemy detection and observation. The committee notes the U.S. Marine Corps is also developing flame resistant organizational gear to address similar requirements. The committee strongly encourages the Army and the Marine Corps to share critical information regarding enhanced FR clothing systems.

The committee recommends an increase of $2.0 million in PE 64601A for the rapid development of enhanced FR clothing systems.

The budget request contained $53.3 million in PE 63002A for advanced medical technologies, but contained no funds for epidemiological studies.

The committee remains strongly committed to the health surveillance and protection of members of the armed forces. Sections 733, 734, 735, and 738 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375) required the Department of Defense (DOD) to create a baseline health data collection program, to track medical care and surveillance in the theater of operations, to declassify information on exposures to environmental hazards, and to fully implement a medical readiness tracking and health surveillance program and force health protection and readiness program. The committee remains concerned that while the services and the Department have made efforts to meet the intent of the law, the Department is not meeting the full requirement and the military services are not effectively carrying out many of DOD's policies.

The committee directs the Secretary of Defense to establish an epidemiological tracking initiative that would capture relevant data from servicemembers returning from overseas operational deployment to create a database of epidemiologically relevant data. The initiative shall then provide the opportunity for researchers to compete for funding on both the basis of scientific merit and the contribution that the studies could make to the identification, diagnosis, and treatment of deployment-related illness(es).

The committee recommends that the projects to be considered for funding under the epidemiological tracking initiative include, but are not limited to the following:

(1) Multiple Sclerosis; and

(2) Adverse health events associated with the use of anti-malarial drugs.

The committee recommends an increase of $5.0 million in PE 63002A for the establishment of the Epidemiological Tracking Initiative and creation of the database of epidemiologically relevant data.

The committee's recommendation to decrease authorized funding for the FCS program in fiscal year 2008 is based upon a combination of significant program schedule and cost challenges, a history of Army changes to the FCS program, and a serious concern about how the cost of the FCS program could undermine the future health of the Army. Although the committee continues to support moving mature technologies that provide needed military capability to the field as soon as possible, the committee is concerned that the larger context in which the FCS program exists has changed significantly since the program began, but the Army has not sufficiently adjusted the FCS program to accommodate the new reality the Army faces.

In the committee report (H. Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007 the committee expressed its views regarding the cost and schedule of the FCS program. Despite the Army's restructuring of the FCS program in January 2007, the committee remains concerned that the Army's effort to develop FCS brigades continues to pose a high risk of significant cost increases and substantial schedule delays. In section 115 of the John Warner National Defense Authorization Act of 2007 (Public Law 109-364), the Senate Committee on Armed Services and the House Committee on Armed Services required the Secretary of Defense to conduct an independent cost analysis of the FCS program. This cost estimate, conducted by the Institute for Defense Analysis, concluded that the research, development, test and evaluation (RDT&E) costs for the FCS program could grow by $13.0 billion over current Army projections, a 50 percent increase in overall RDT&E costs. This analysis of possible cost increase in RDT&E is similar to 2006 RDT&E cost estimates by the Cost Analysis Improvement Group, an element of the Office of the Secretary of Defense.

Additionally, the committee is concerned about the Army's changing position on the overall purpose and size of the FCS program. When funding was first authorized for FCS in the Bob Stump National Defense Authorization Act of 2003 (Public Law 107-314), the Army's goal was to have an initial FCS operational capability in 2010 followed by the conversion of the Army's entire combat force to FCS brigades by 2032. In 2007, the Army's goal is to have an initial FCS operational capability in 2015, with just fifteen of the Army's seventy-six combat brigades converted to FCS configuration by 2029. Overall, the Army's plans for the FCS program have changed from a program intended to rapidly transform the entire Army to one that would focus on transforming just 20 percent of the Army's combat units and provide a medium-weight combat capability similar to that provided by existing Stryker brigade combat teams.

Finally, the committee believes that the overall context in which the FCS program exists has changed dramatically. When first conceived in 1999, the Army was not at war, there was little chance of the size of the Army increasing, and modernization of the Army's existing equipment was not well funded. From the committee's perspective in 2007, all of these basic assumptions have changed. High operational demands on the Army are likely to continue for many years with attendant costs of replacing and resetting equipment used during ongoing operations. Furthermore, the Army is now on a path to add significant additional troops to its ranks, and many other Army equipment modernization efforts are well funded in the 2008-2013 Future Years Defense Program.

Given the Army's many other RDT&E, procurement, and force structure efforts, including continued reset costs to support overseas deployments, upgrades to current combat systems, fully equipping the Army National Guard, completion of the Army's modular force initiative, and the growth in the size of the Army over the next five years, the committee does not believe that the FCS program is on a sustainable or realistic path. As a result, the committee recommends substantial changes to the structure of the FCS program in fiscal year 2008. The committee's recommended changes seek to preserve the aspects of the FCS program that could, if successful, benefit the entire Army and get useful equipment into the hands of soldiers on a realistic timeline. However, the committee's recommended changes seek to delay aspects of the FCS program that will not deliver capability for many years, or are redundant given existing Army capabilities. The committee expects the Army to comply with existing law regarding fielding of the Non Line of Sight Cannon (NLOS-C), which directs the Army to deliver both Increment 0 and Increment 1 prototypes for the NLOS-C in accordance with the schedule found in the Army's 2008 budget justification materials.

The committee is concerned that much of the FCS manned ground vehicles' survivability in combat is tied to FCS sensors and networking equipment providing vehicle crew members with unprecedented levels of situational awareness regarding enemy and friendly forces. Because the network and sensor elements of FCS are being developed at the same time as the vehicles, should the sensor and network elements face delays or not meet performance expectations, it is possible that the Army would have to reevaluate the design of the FCS manned ground vehicles late in the development process to accommodate lower network capability than now assumed. Changes late in a development cycle could push FCS manned ground vehicles beyond an affordable level given the Army's other procurement goals outside the FCS program in the 2010-2015 timeframe. Based on this cost risk, delays in complementary programs, high-risk technology elements, and unstable requirements, the committee believes that the Army should delay the development of FCS manned ground vehicles.

The committee recommends $463.0 million, a decrease of $233.3 million in PE 64660A, for FCS manned ground vehicle development. The committee notes that this decrease leaves intact the FCS program's efforts to develop the non line-of-sight cannon system, funding for which is authorized under a separate program element. The committee also leaves funding intact for development of active protection systems, which the committee believes is an important element for all future Army vehicles.

Future Combat Systems system of systems engineering and program management

The budget request contained $1.6 billion in PE 64661A for Future Combat Systems (FCS) system of systems engineering and program management.

This budget request is based upon integration of work done in the other aspects of the FCS program that are separately funded. Because the committee is recommending significant decreases to other parts of the FCS program, the committee believes that decreases in the FCS system of systems engineering and program management program element are warranted to properly align overall program management and engineering efforts with the total authorized level of funding.

The committee recommends $1.0 billion, a decrease of $566.3 million in PE 64661A, for FCS system of systems engineering and program management.

The committee notes that the Army is currently fielding a large fleet of UAS of various models and capabilities. The committee believes that the Class IV FCS unmanned aerial system provides a capability that would be redundant when considering other Army UAS programs.

The committee recommends $20.1 million, a decrease of $21.0 million in PE 64662A, for FCS UAS development.

The committee believes that while large or armed FCS unmanned ground vehicles could provide a useful capability to the Army in the future, a combination of high-risk technology development, unclear requirements, and immature operational concepts require additional time devoted to developing basic technologies for large or armed FCS unmanned ground vehicles.

The committee recommends $43.9 million, a decrease of $46.7 million in PE 64663A, for FCS unmanned ground vehicle development.

Global Combat Support System

The budget request contained $129.7 million in PE 33141A for the Global Combat Support System-Army (GCSS-A).

GCSS-A is the tactical component of the Single Army Logistics Enterprise (SALE), and will implement a comprehensive logistics automation solution for deployed units that provides streamlined supply operations, maintenance operations, property accountability and logistics management, and integration procedures. The committee notes, however, that the Army is encountering problems in executing the acquisition and test strategies for this program, which will likely affect the Army's ability to execute funds in a timely manner.

The committee recommends $94.7 million, a decrease of $35.0 million in PE 33141A to GCSS-A.

Leishmaniasis skin test antigen

The budget request contained $12.5 million in PE 63807A for medical systems advanced development, but contained no funds for leishmaniasis skin test antigen.

Leishmaniasis is normally a cutaneous parasitic disease that is endemic to many global regions where U.S. military involvement is possible. Approximately 1000 cases a year are diagnosed in military personnel deployed to Operation Iraqi Freedom and Operation Enduring Freedom, which has resulted in a significant number of evacuations for treatment in the continental United States. During Operation Desert Storm, visceralization of the disease was observed for the first time, leading to a number of servicemember fatalities. Leishmaniasis also poses a threat to the blood supply, which is now managed by screening out military donors who have recently returned from deployment in endemic regions.

The committee understands that in fiscal year 2000, the U.S. Army Medical Material Development Activity programmed funds for Food and Drug Administration (FDA) trials of a diagnostic antigen skin test that had been under intramural development, but because of funding constraints ceased support in fiscal year 2003 to concentrate exclusively on clinical treatments for those personnel already presenting symptoms. The committee believes a leishmania antigen skin test would provide a valuable tool for military doctors to identify and provide definitive care to asymptomatic servicemembers infected with the parasite, and to safeguard the blood supply by screening out servicemembers who should not become donors.

The committee recommends $14.5 million, an increase of $2.0 million in PE 63807A, to support FDA phase III trials of the leishmaniasis skin test antigen.

Lightweight small arms technologies

The budget request contained $8.1 million in PE 63607A for the joint service small arms program, containing $7.3 million for lightweight small arms technologies (LSAT) demonstrations.

The LSAT program is attempting to reduce the weight of current soldier small arms and small caliber ammunition by 30 to 40 percent. The committee understands small arms and small caliber ammunition are two of the four heaviest items an infantryman carries into combat. The committee notes that the basic infantryman entering combat can be required to carry combat configured loads of equipment exceeding 90 pounds. The committee is supportive of efforts that accelerate advanced technologies to reduce the combat carrying equipment load for dismounted infantrymen. Additionally, the committee believes lighter combat configured equipment loads will have a positive effect on soldier performance and mobility.

The committee recommends $13.1 million, an increase of $5.0 million in PE 63607A to accelerate the early `spin out' demonstrations of lightweight technology enhancements to existing small arms weapon programs.

Longitudinal research on troop health outcomes

The Veterans Health Care Amendments of 1983 (Public Law 98-160) directed the Department of Veterans Administration to conduct a study in order to better understand Vietnam veterans' psychological postwar adjustment trends. This investigation, known as the National Vietnam Veterans Readjustment Study, provided results and recommendations to Congress that continue to help shape important public policies for the prevention and treatment of post-traumatic stress disorder for military and veteran populations. With ongoing deployments to Operation Iraqi Freedom and Operation Enduring Freedom there is evidence, from short-term studies of military personnel and veterans, that the current war zones may be associated with unique health outcomes not seen in former veterans' cohorts. Experts acknowledge that these problems may negatively affect both military readiness and the quality of life of deployed service members and their families.

The committee believes that a representative, longitudinal study with a comprehensive clinical assessment of key outcomes is required so that the true needs of deployed service members and their families can be identified and supported. The committee encourages the Secretary of Defense and the Secretary of Veterans Affairs to engage in a research partnership to proactively identify and address the short and long-term health and behavioral health consequences of war zone service among servicemembers and their families.

Modeling fatigue and cognitive effectiveness

The budget request contained $76.5 million in PE 62787A for medical technologies, containing $3.1 million for modeling fatigue in warfighters, but contained no funds for modeling the impact of fatigue on operationally-relevant cognitive effectiveness.

The committee is aware of the need for understanding the interaction between the warfighter's fatigue and operationally-relevant cognitive effectiveness. The committee believes that technology solutions that improve this understanding and can provide relevant data to battlefield commanders would prove critical to the commander's situational awareness.

The committee recommends an increase of $4.0 million in PE 62787A for developing modeling technology to evaluate individual warfighter fatigue and operationally-relevant cognitive effectiveness.

Blowing sand and dust particles cause damage to helicopter windscreens, inhibiting the ability of aircrew members to see through the windscreens, requiring the expenditure of funds, and resulting in aircraft downtime to repair.

The committee is aware that thin film laminates are being applied to helicopters operating in Operation Iraqi Freedom and Operation Enduring Freedom which is resulting in dollar and manpower savings. Promising technology has also been demonstrated using plasma enhanced chemical vapor deposition for applying a nanocrystalline diamond thin film layer onto critical engine, transmission, and structural aircraft components to increase durability in harsh environments.

The committee encourages the Department of Defense to examine the use of nanocrystalline diamond coatings and protective laminants on critical systems to preserve components, increase aircraft availability, reduce costs, and increase safety.

Network enabled combat identification

The budget request contained $39.8 million in PE 62120A for sensors and electronic survivability, containing $1.9 million for combat identification (CID) technologies.

The committee recognizes the urgent need to field a cost-effective CID network combat capability that will provide the warfighter greater freedom of action and enable enhanced operational tempo, while reducing fratricide in all tactical and operational environments including urban and restrictive terrain.

The committee recommends an increase of $5.0 million in PE 62120A for continued development and demonstration of network enabled CID.

Oxygen diffusion dressings

The budget request contained $76.5 million in PE 62787A for medical technology, but included no funding for oxygen diffusion dressings for the accelerated healing of battlefield wounds and burns.

Wounds are generally hypoxic and oxygen has been shown to have a beneficial effect on wound healing. The committee understands, however, that practical implementation of oxygen therapy at reasonable cost with broad flexibility has been problematic. The committee is aware that the Food and Drug Administration has recently approved an oxygen diffusion dressing that allows the slow release of oxygen directly to the wound site. The committee believes these dressings have the potential to improve outcomes for servicemembers suffering from burns and injuries, two priorities for the U.S. Army Institute for Surgical Research.

The committee recommends an increase of $1.0 million in PE 62787A to assess the efficacy of oxygen diffusion dressings in reducing healing time, pain, scarring, and complications such as infection.

Patriot/Medium Extended Air Defense System combined aggregate program

The budget request contained $372.1 million in PE 64869A for the Patriot/Medium Extended Air Defense System (MEADS) combined aggregate program, a decrease of $177.3 million from what was originally planned for fiscal year 2008 according to budget justification material provided by the Army.

The committee is concerned that this decrease could potentially impact the U.S. contribution to the tri-national U.S./German/Italian MEADS program. The committee is aware that the Army plans to re-program approximately $42.0 million to ensure that it meets its commitments to the MEADS program. The committee believes that MEADS will provide the warfighter an improved capability to deal with short- and medium-range ballistic and cruise missile threats and encourages the Army to fully fund the MEADS program in its future budget requests.

The committee recommends $372.1 million in PE 64869A for the Patriot/Medium Extended Air Defense System combined aggregate program, the amount of the budget request.

Polymer matrix composites for rotorcraft drive systems

The budget request contained $53.9 million in PE 63003A for aviation advanced technology, but contained no funds for the demonstration of polymer matrix composite drive trains.

The committee notes the opportunity to reduce production, operations, and support costs of rotorcraft through the use of polymer matrix composite (PMC) technologies for major components such as drive trains. Prior year funding for risk reduction and coupon testing has resulted in the development of PMC full scale test articles that require life system testing prior to integration for actual rotorcraft testing.

The committee recommends an increase of $8.0 million in PE 63003A to demonstrate full scale PMC drive train test articles under the rotorcraft drive system-21 program.

RAND Arroyo Center

The budget request contained $16.3 million in PE 65103A for the RAND Arroyo Center.

The committee is concerned that the Army proposed decreasing the budget for its only Federally Funded Research and Development Center (FFRDC) from a requested amount of $21.5 million in fiscal year 2007 to a requested amount of $16.3 million in fiscal year 2008. The committee recognizes the important role of FFRDCs in developing solutions to critical Army resourcing, logistics, manpower, training, technology development and strategic concepts challenges, and believes that the proposed 24 percent funding decrease will significantly reduce the RAND Arroyo Center's ability to provide high-quality analysis to the Army.

The committee recommends $18.3 million, an increase of $2.0 million in PE 65103A for the RAND Arroyo Center.

Sensor visualization and data fusion program

The budget request contained $81.6 million in PE 35208A for the Distributed Common Ground System (DCGS).

The committee recognizes the potential for the DCGS program to enhance the capabilities of commanders to synchronize and consolidate intelligence data fusion efforts. The committee also recognizes the use for video simulation of battlefield threats in mission rehearsals.

The committee recommends an increase of $2.0 million in PE 35208A for the sensor visualization and data fusion research within the DCGS program.

Smart energetic architecture for missile systems

The budget request contained no funds for the smart energetic architecture for missile systems.

The smart energetic architecture for missile systems is intended to improve the safety, reliability, and performance of missile systems across the Department of Defense.

The committee recommends an increase of $4.5 million in PE 63313A to raise the technology readiness level rating of the smart energetic architecture for missile systems.

Tactical metal fabrication system

The budget request contained no funds for the tactical metal fabrication system.

The tactical metal fabrication system would provide a mobile, containerized foundry to provide deployed forces with the capability to manufacturer repair parts in theater.

The committee recommends an increase of $6.3 million in PE 62601A for the tactical metal fabrication system.

Tactical wheeled vehicle improvement program

The budget request contained no funds for the tactical wheeled vehicle improvement program.

The committee remains concerned about casualties caused by rollovers of overweight lightweight tactical wheeled vehicles. While survivability against improvised explosive devices remains a primary concern, the importance of rollover prevention should also be considered as the Department of Defense develops the next generation of lightweight tactical vehicles as an important force protection measure. The committee is aware domestic torque-vectoring technology could increase stability and performance in lightweight commercially available vehicles. The committee notes torque-vectoring allows active control of wheel speed ratio and torque distribution typically through the application of multi-plate wet clutches coupled with advance gear-train technology. The committee encourages the Secretary of Army to examine the feasibility and capital investment required to develop the means to transfer commercially available torque-vectoring technology, once its been demonstrated, to the emerging and future classes of lightweight tactical wheeled vehicles.

Tactical wheeled vehicle long term armoring strategy

The budget request contained $131.4 million in PE 63005A for combat vehicle and automotive advanced technology.

The committee understands the Army's long-term armoring strategy (LTAS) is a long-term capabilities-based armoring strategy for tactical wheeled vehicles (TWVs) that would provide greater protection to TWVs than the currently fielded add-on-armor kits, as well as provide battlefield commanders with the capability to change protection levels based on the mission, threat, or technology changes using an A-Kit/B-Kit concept. The committee is aware LTAS is not a program in itself, but rather an armor initiative that would address commonality and standardization of armor-related components across the TWV fleet. The committee understands the LTAS would allow for the upgrade of armor protection as the force protection threat increases or as new armoring technologies are developed. The committee supports this initiative and commends the Army for pursuing this capability based strategy.

The committee understands aluminum has been chosen as a base material for the development of future TWV armor kits as part of the LTAS. The committee understands fiscal year 2007 appropriations are being used to perform the design and development of several large structural components for the truck fleet to include the integration of an aluminum A-kit, side plates, frame rails, cross members into a common chassis. The committee also understands significant work is being conducted to advance the development and re-engineer the design of antiballistic windshield armor prototypes (AWA) to be integrated onto the TWV fleet.

The committee recommends an increase of $10.0 million in PE 63005A to demonstrate the use of aluminum alloys, processes, and other joining technologies to meet LTAS requirements for the TWV fleet, as well as an increase of $4.5 million in PE 63005A for the development of advanced AWA prototypes.

Training-based collaborative research in consequence management

The budget request contained $17.4 million in PE 62716A for human factors engineering technology, but contained no funds for training-based collaborative research in military consequent management efforts.

The committee strongly supports Department of Defense initiatives to improve training and urges the Department to establish well-defined training performance measurements as a means to ameliorate effective training and soldier performance on the battlefield, especially for arduous and dynamic situations involving consequence management activities. To improve the effectiveness of training for such situations the committee encourages the Department to continue efforts to harness the collective talents of industry and academia, and to introduce technological innovation at the earliest phases of doctrinal and acquisition development. The committee urges the Department to apply these techniques to military law enforcement, chemical-biological management and training, mine and unexploded ordnance mitigation, non-lethal weaponry, and other engineering disciplines. The committee strongly supports efforts to improve these capabilities.

The committee recommends an increase of $25.0 million in PE 62716A for training-based collaborative research.

Unmanned rotorcraft risk reduction demonstrations

The budget request contained $55.0 million in PE 62618A for ballistics technology, but contained no funds for the DP-5X unmanned helicopter for testing advanced blades, engines, weapons and tail boom technologies.

The committee recommends an increase of $1.8 million in PE 62618A to procure DP-5X rotorcraft test aircraft.

Warfighter Information Network--Tactical

The budget request contained $222.3 million in PE 63782A for continued development of the Warfighter Information Network--Tactical (WIN-T).

The committee expressed a concern regarding the lack of coordination and potential capability overlap between the WIN-T program and the Joint Network Node (JNN) program in the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364). The WIN-T program continues to experience unclear requirements, schedule changes, cost growth, and high-risk technology development challenges. In addition, on March 5, 2007 the committee received notification of a Nunn-McCurdy cost growth breach for the WIN-T program. The Under Secretary of Defense for Acquisition, Technology, and Logistics is required to make a final decision on the future of the WIN-T program by June 5, 2007. The committee also notes that the Army has now committed to field the JNN system, a system that provides a similar capability to that planned for the WIN-T system, to the entire Army.

The committee recommends $120.0 million in PE 63782A, a decrease of $102.3 million for the WIN-T program. The committee urges the Army to stabilize the WIN-T program and place it on a schedule that more realistically addresses the Army's substantial existing and planned investment in the JNN system. The committee also urges the Army to consider using the WIN-T program to upgrade existing JNN equipment using incremental improvements to bring the WIN-T program's mobile networking capability to the Army as soon as possible. The committee also urges the Army to consolidate its oversight and management of the JNN and WIN-T programs to better manage the path toward a single future battlefield network capability.

NAVY RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

OVERVIEW

The committee recommends $17.3 billion, an increase of $258.1 million to the budget request.

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ITEMS OF SPECIAL INTEREST

76mm super rapid medium caliber gun system

The budget request contained $31.0 million in PE 63795N for land attack technology, but contained no funds for continued testing of the 76mm super rapid medium caliber gun system.

The committee believes this system may advance the threshold of superiority for medium caliber gun systems on naval vessels and creates a competitive environment for future procurement of medium caliber gun systems.

The committee recommends an increase of $5.0 million in PE 63795N for continued testing of the 76mm super rapid medium caliber gun system.

Advanced materials for acoustic window applications.

The budget request contained $11.2 million in PE 25620N for surface anti-submarine warfare combat system integration, but contained no funds for advanced materials for acoustic window applications.

The committee remains concerned over the failure of existing sonar array windows on surface vessels. Therefore, the committee encourages the Secretary of the Navy to begin a developmental program using advanced composite materials. This program should combine numerical analysis techniques with large scale testing.

The committee recommends an increase of $10.0 million in PE 25620N for advanced materials for acoustic window applications.

Advanced non-lethal hail and warning laser system

The budget request contained $10.9 million in PE 63651M for joint non-lethal weapons technology development, but contained no funds for the enhancement of the non-lethal hail and warning laser system.

The committee recognizes the Marine Corps' need to signal and hail vehicles at increased operational ranges. The committee encourages the Marine Corps to identify and integrate new laser technologies and techniques in its hail and warning devices such that range is increased and eye safety is improved for both civilian and military personnel.

The committee recommends $17.9 million, an increase of $7.0 million in PE 63651M for the enhancement of the non-lethal hail and warning laser system.

Affordable Weapon System

The budget request contained $31.0 million in PE 63795N for land attack technology, but contained no funds for the Affordable Weapon System (AWS).

The committee understands that AWS is an advanced technology initiative to design, develop, and produce a precision guided weapon similar to existing missile systems. Launched by a small rocket booster and powered in flight by a small turbojet engine, AWS is designed to carry a 200-pound warhead to a target over 600 hundred miles away, and could support the Navy triad of fires concept for combat operations in the littorals. During previous flight testing, AWS demonstrated line-of-sight communications and could have the potential to communicate with ground control stations using beyond line-of-sight satellite data links. The concept of AWS employment is to fly directly to its target guided by the Global Positioning System, or loiter for several hours until a forward observer commands it to a target. AWS could be adapted to a variety of launch platforms and payloads, and could offer a unique opportunity to leverage commercial off-the-shelf technologies and systems engineering principles to rapidly produce and deploy an affordable loitering cruise missile.

The committee recommends an increase of $30.0 million in PE 63795N for AWS.

Age exploration model

The budget request contained $100.3 million in PE 25633N for the development of various aviation-related improvements, but contained no funds for development of age exploration model.

The age exploration model is being developed to understand connections between aircraft age, reliability, maintainability, and readiness to provide the Department of the Navy with a tool for understanding, predicting, and communicating impacts of decisions to extend aircraft service lives, and for mitigating risks associated with these decisions. The committee notes that development of the age exploration model was initiated by the Department of the Navy in fiscal year 2002; the Department of the Navy requested and Congress authorized and appropriated $2.9 million for fiscal year 2005; and the committee understands that these funds are currently being used to complete development of a prototype predictive information technology-based model. The committee understands that efforts thus far have proven the tool's mathematical foundation and provided a viable operational tool for engineering analysis. The committee believes that the age exploration model should be employed in the Department of the Navy's intermediate- and depot-level aircraft maintenance facilities, and understands that the age exploration model could be enhanced for use on other platform domains such as ships and support vehicles.

The committee recommends $103.3 million, an increase of $3.0 million in PE 25633N to enhance the age exploration model for use on other platform domains, and to further develop the age exploration model so that it can be used in the Department of the Navy's intermediate- and depot-level aircraft maintenance facilities.

Blossom Point Satellite facility

The budget request contained $93.4 million in PE 62235N, but contained no funds for the Blossom Point Satellite facility.

The Blossom Point Satellite facility provides 24 hour command and control support to low-earth and mid-earth orbiting satellites.

The committee recommends an increase of $2.0 million in PE 62235N for the Blossom Point Satellite facility.

The budget request contained $49.7 million in PE 63114N, but contained no funds to continue the countermine light imaging detection and ranging (LIDAR) unmanned aerial vehicle (UAV)-based system (CLUBS).

On going CLUBS efforts include programming efforts to produce high resolution images of the seafloor. Further funding in this area will allow continuance of ongoing algorithm and software development to achieve detection and classification of targets of interest.

The committee recommends an increase of $2.2 million in PE 63114N to continue the development of CLUBS.

The budget request contained $70.9 million in PE 63123N, but contained no funds for the development of critical composite technologies for Special Operations Forces medium-range endurance craft.

The committee recommends an increase of $1.0 million in PE 63123N for research and development to reduce technical risk associated with the use of composite technologies for larger craft.

DDG 1000 permanent magnet motor system

The budget request contained $503.4 million in PE 64300N for DDG 1000 total ships systems engineering, but contained no funds for continued development of the permanent magnet motor.

The committee understands that the permanent magnet motor technology will save weight and increase fuel efficiency in the next generation of surface combatants, including the DDG 1000.

The committee recommends an increase of $9.0 million in PE 64300N to complete design of the motor and motor control electronics.

Deep extended echo ranging

The budget request contained $18.4 million in PE 64261N for acoustic search sensors.

The committee commends the Navy's commitment to research into acoustic detection capabilities in broad area deep ocean environments. The committee understands that using existing sonobuoy capability coupled with new software and processing systems has the potential to significantly increase the ability to detect contacts using only acoustic means in broad areas of the deep ocean.

To meet this goal, the committee recommends an increase of $2.0 million in PE 64261N for development and testing of the deep extended echo ranging system.

Diagnostic/prognostic pump system

The budget request contained $9.5 million in PE 63513N, but contained no funds for a diagnostic/prognostic pump system.

The committee understands that a pump system with internal diagnostic capabilities provides an invaluable aid for proactive maintenance, eliminating the need to perform conditional assessments via planned maintenance. In addition, the system will provide savings on inventory and reduce the need for redundant systems.

The committee recommends an increase of $6.0 million in PE 63513N for the development of a two-screw magnetic drive pump system with diagnostic/prognostic capability.

DP-2 vectored thrust aircraft

The budget request contained $49.7 million in PE 63114N for the development of various power projection advanced technology programs, but contained no funds for the DP-2 vectored thrust aircraft program.

The DP-2 is a twin-engine, vectored thrust, high-speed combat transport aircraft capable of hover and vertical take-off and landing. The committee believes that the DP-2 has the potential to provide leap-ahead capabilities to Special Operations Forces and other forces since it can combine vertical take-off and landing capabilities of a helicopter with the superior range and payload characteristics of fixed-wing jet aircraft. The committee understands that to date DP-2 testing has focused on milestones set by the Office of Naval Research, which include hover out of ground effect and mild hover maneuvers, but believes testing should be expanded to include flight in a conventional forward-thrust mode.

The committee recommends an increase of $6.0 million in PE 63114N for the DP-2 vectored thrust program, and expects that these funds will provide for forward-thrust mode testing, structural loads testing, continued hover testing, and to obtain an experimental aircraft type certificate from the Federal Aviation Administration.

Fiber optic technology

The budget request contained $134.9 million in PE 63561N for advanced submarine system design.

The committee recommends an increase of $4.0 million in PE 63561N to continue research and development of promising fiber optic technology for development of advanced fiber optic acoustic systems.

Free electron laser development for naval applications

The budget request contained $10.0 million in PE 62114N for Power Projection Applied Research. The committee believes that this research is critical to advanced technologies which might employ high energy lasers.

The committee recommends an increase of $5.0 million in PE 62114N to further the development of this important new technology.

High temperature superconducting motor

The budget request contained $9.5 million in PE 63513N for shipboard system component development, but contained no funds for the continued testing of the high temperature superconducting motor.

The committee commends the Navy for funding the development of this critical technology, but remains concerned that no funds were requested for final full load testing and for design modifications, which allow the motor to be compatible with the shipboard environment. The committee views funding for the development of both the permanent magnet motor and the high-temperature superconducting motor to be in the best interest of the future naval force.

The committee recommends an increase of $9.0 million in PE 63513N for full load testing and design modifications for the high temperature superconducting motor.

Hybrid-electric drive systems

The budget request contained $9.5 million in PE 63513N for shipboard system component development, but contained no funds for development of a hybrid electric motor for use during the modernization of DDG 51 class destroyers.

The committee understands that development of this technology would have significant benefits to the efficiency of the ships propulsion system and may save thousands of gallons of fuel yearly.

The committee recommends and increase of $8.0 million in PE 63513N to investigate multiple technologies to develop and field a hybrid electric drive system.

The budget request contained no funds in PE 62234N for improved corrosion protection for the electromagnetic aircraft launch system (EMALS).

The committee understands that the EMALS currently scheduled to be fielded on the Ford class aircraft carriers must operate in a highly corrosive environment.

The committee recommends an increase of $3.0 million in PE 62234N to fund a program to develop design-specific corrosion data under simulated catapult conditions to allow continued design refinement to mitigate the effect of the corrosive environment on EMALS operation.

Joint Stand-Off Weapon-Extended Range

The budget request contained $31.0 million in PE 63795N for the development of various land attack technology programs, but contained no funds for flight demonstration of the joint stand-off weapon (JSOW)-extended range (ER).

The JSOW is a 1,000-pound, air-to-surface precision strike glide weapon that can carry several different lethal packages with a stand-off range of 12 to 63 miles. The committee understands that the integration of an engine into the JSOW would result in a weapon known as the JSOW-ER, which would substantially increase stand-off attack range capabilities at a lower cost than similar weapons.

The committee recommends an increase of $3.0 million in PE 63795N for a JSOW-ER flight demonstration.

Marine Corps assault vehicles

The budget request contained $288.0 million in PE 63611M for development of the expeditionary fighting vehicle (EFV).

While the committee recognizes the Marine Corps requirement to conduct amphibious assaults and land operations using armored vehicles, it is concerned that the EFV program continues to have unclear requirements and serious technology development challenges. The committee supports efforts by senior Marine Corps, Navy, and Department of Defense (DOD) leaders to thoroughly review the EFV program, analyze its requirements, and assess its engineering and design challenges. The committee also notes that the EFV program received $347.8 million in fiscal year 2007 funding, which was based on continued research and development that has now been suspended pending the outcome of DOD reviews of the program, making it unlikely that the full $347.8 million will be obligated or executed in fiscal year 2007. In addition, the committee notes that the schedule for the new system development and demonstration phase proposed in Marine Corps budget justification materials is likely to be further delayed.

The committee recommends $88.0 million, a decrease of $200.0 million in PE 63611M for EFV development. The committee believes that this amount, in addition to the excess funds provided in fiscal year 2007, are sufficient to support continued engineering work and development of EFV prototypes in fiscal year 2008.

Maritime identification surveillance technology

The budget request contained $40.8 million in PE 63235N for common picture advanced technology, but contained no funds for development of a demonstration project of a maritime identifications surveillance system.

The committee understands that the development of high-resolution, imaging phased array radar systems provide significant promise in the identification, surveillance, and tracking of all contacts in and around naval vessels at sea, in coastal waters, and ports.

The committee recommends an increase of $2.8 million in PE 63235N for the development of a demonstration project in support of a maritime identification surveillance system.

MK-48 torpedo technology development

The budget request contained $17.9 million in PE 25632N for MK-48 torpedo advanced capability (TADCAP) development, but contained no funds for a post-launch communication system for use in the littorals.

The committee understands that the Chief of Naval Operations has stressed that successful operations in shallow water is critical to countering third world diesel submarine threats. Torpedo testing in shallow water has demonstrated that in-service MK-48 TADCAP has less than full capability in a shallow water engagement environment. The committee notes that traditional weighted and hollow flexible-hose and guidance wire communications technologies cannot satisfy future operating environment requirements, and that a high bandwidth post-launch communications system is needed to ensure the MK-48 TADCAP is able to meet requirements in the littoral environment.

The committee recommends an increase of $2.0 million in PE 25632N for development of a post-launch communication system for the MK-48 TADCAP.

Propulsor manufacturing technology development

The budget request contained $9.5 million in PE 63513N for shipboard systems component development but contained no funds for propulsor manufacturing technology development (PMTD).

The PMTD program is pursuing new technologies and manufacturing process to introduce Nickel Boron (NiB) coatings for propellers, water jets, and submarine propulsors. These coatings have the potential to significantly reduce fouling, drag, cavitation, and wear, which will increase ship fuel efficiency and reduce life cycle maintenance costs.

The committee recommends an increase of $6.5 million in PE 63513N for PMTD.

Reliable Replacement Warhead

The budget request contained $81.4 million in PE 11221N for strategic submarine and weapons systems support, and containing $30.0 million specifically for the Reliable Replacement Warhead (RRW) program.

The Navy budget justification material describes the RRW funds as enabling the Navy to `continue the RRW Program into Phase 3 Engineering Development.' In Title XXXI of this Act, the committee decreases funding for execution of the RRW program by the National Nuclear Security Administration. The committee does not support moving into Phase 3 activities during fiscal year 2008, but understands that the Navy intends to pursue better design definition as part of the Phase 2a study during fiscal year 2008.

The committee recommends $56.4 million in PE 11221N, a decrease of $25.0 million for the RRW program.

Rotorcraft external airbag system

The budget request contained $6.3 million in PE 63216N for aviation survivability development, but contained no funds for development of a rotorcraft external air bag system (REAPS) for helicopters.

The committee notes that Congress appropriated $2.7 million in fiscal year 2006 and $2.9 million in fiscal year 2007 for the development of a rotorcraft external airbag system. Current testing has demonstrated that REAPS application for rotorcraft will require larger airbags integrated into the aircraft and will be enhanced by the development of a predictive crash sensors and algorithms. The committee understands that REAPS should increase overall aircrew survivability during a rotorcraft ground or water crash or unintentional hard landing.

The committee recommends an increase of $4.0 million in PE 63216N for REAPS.

Seafighter

The budget request contained $70.8 million in PE 63123N for force protection advanced technology, but contained no funding for Seafighter (formerly X-Craft).

Seafighter is a high speed, shallow draft advanced technology demonstration vessel that has been used to validate many of the Navy's operational concepts for littoral warfare and mitigate risk for future acquisition programs, including the Navy's Littoral Combat Ship (LCS). The committee notes that in fiscal year 2007 Congress authorized and appropriated funds to begin the process of upgrading Seafighter to a condition, which would allow the ship to deploy in support of urgent combatant commander requirements.

The committee understands the Navy intends to home port the vessel in Panama City, Florida, with a contracted civilian crew, and use the vessel for experimental purposes. The committee believes this plan fails to take full advantage of the capabilities of this vessel. The committee notes that the Navy currently operates the High Speed Vessel (HSV-2), a high speed, wave piercing aluminum hulled catamaran, under contract with Australia. This vessel has been used by the Navy in development, risk mitigation, and deployed operations. The committee recommends that the Navy transition Seafighter to those tasks when the HSV-2 lease expires in July 2007.

The committee recommends an increase of $22.0 million for PE 63123N to continue modifications to Seafighter including, the addition of offensive and defensive armament, the improvement of ship survivability systems, and the completion of command and control, hull, mechanical, and electrical upgrades.

Software reconfigurable payloads

The budget request contained $86.9 million in PE 64231N for tactical command systems, but contained no funds for software reconfigurable payloads.

FORCEnet is the Navy and Marine Corps' premiere initiative to implement network centric operations. The software reconfigurable payload capability will assist in the development of the FORCEnet architecture by providing multi-mission communications and intelligence, surveillance and reconnaissance (ISR) capabilities; dynamic bandwidth allocation; real-time reprogrammability to support changing tactical situations; and interoperability with joint, allied and coalition forces.

The committee recommends $91.9 million, an increase of $5.0 million in PE 64231N to develop robust and reconfigurable communications packages to support Navy and Marine Corps applications.

Tactical e-field buoy development program

The budget request contained $16.7 million in PE 63254N for antisubmarine warfare (ASW) systems development, but contained no funds for a tactical electric (E) field buoy development program.

The committee believes that countering the ASW threat in the littoral ocean environment will require a variety of systems and platforms. The committee understands that E-field detecting buoys have shown promising results against challenging targets at a tactically significant range in at-sea testing.

The committee recommends an increase of $6.0 million for PE 63254N for development and testing of an affordable E-field buoy that is capable of detecting challenging targets in acoustically difficult littoral waters, and is compatible with existing Navy air deployment systems.

Virtual medical education

The budget request contained $88.3 million in PE 62236N for warfighter sustainment applied research, but contained no funds for virtual reality technologies to improve medical education.

The committee is concerned that as the number of casualties from Operation Iraqi Freedom and Operation Enduring Freedom grows, the need for proficient and experienced medical professionals to care for wounded warriors is more important than ever. One method for maintaining a high degree of clinical expertise in a supportive, low-stress environment is to provide experiential learning tools generated by game-based modeling and simulation technologies. Such virtual game-based modeling and simulation technologies offer efficiencies by combining classroom education techniques with skills-based learning to link the education experience with performance.

The committee recommends $103.3 million, an increase of $15.0 million in PE 62236N to create and deploy cutting-edge training technologies designed to improve the readiness and ensure a trained workforce in military medicine.

AIR FORCE RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

OVERVIEW

The committee recommends $25.7 billion, a decrease of $973.0 million to the budget request.

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ITEMS OF SPECIAL INTEREST

Advanced Composite Cargo Aircraft Demonstration

The budget request contained $64.9 million in PE 63211F for aerospace technology development and demonstration, containing $35.0 million for the Advanced Composite Cargo Aircraft Demonstration program.

The committee notes that the program is not adequately linked to requirements for future military aircraft, nor has the program been structured to effectively capitalize on previous technology development programs, such as the Composites Affordability Initiative.

The committee recommends $29.9 million, a decrease of $35.0 million in PE 63211F for the Advanced Composite Cargo Aircraft Demonstration program.

Advanced Extremely High Frequency 4

The budget request contained $603.2 million in PE 63430F for Advanced Extremely High Frequency (AEHF) procurement.

The committee is concerned about the fragility of the current constellation of protected communication satellites used by the warfighter. Delays in the development and fielding of the Transformational Satellite Communications (TSAT) program could result in a gap in global strategic communications coverage.

The committee believes that an additional AEHF satellite can provide adequate near-term connectivity without risking a gap in protected communications capability and coverage. As a result of these concerns, the committee recommends procuring an additional AEHF satellite.

The budget request contained $139.6 million in PE 34260F for the airborne signals intelligence (SIGINT) enterprise, containing $10.9 million for the Global Hawk Unmanned Aerial System (UAS). The budget request also contained $298.5 million in PE 35220F for the Global Hawk UAS.

The committee is aware that the Airborne SIGINT Enterprise continues to provide non-recurring engineering for SIGINT equipment for the Global Hawk UAS. The committee is concerned that the research and development request in PE 34260F for the SIGINT capability on board the Global Hawk UAS duplicates the request in PE 35220F.

Therefore, the committee recommends $128.7 million, a decrease of $10.9 million in PE 34260F for the airborne SIGINT payload for the Global Hawk UAS.

Alternate infrared satellite system

The budget requests contained $230.9 million in PE 64443F for development of the Alternate Infrared Satellite System (AIRSS).

The committee is concerned with the current AIRSS acquisition strategy. This system was initially conceived as a low-technical risk system in case the current missile warning system being developed did not perform to expectations. The AIRSS program now includes significant technology development and a flight test demonstration; both activities add additional risk to the program and have little benefit in the near-term. Furthermore, the system requirements are ill defined and the committee is concerned that the cost and schedule estimates are optimistic.

With the success achieved by the Space Based Infrared System highly elliptical orbit payload in 2007, the committee believes the AIRSS development program is premature.

The committee recommends $30.0 million in PE 64443F to support continued development of wide field-of-view focal plane technology, a decrease of $200.9 million to the AIRSS program.

B-2 Small Diameter Bomb integration

The budget request contained $244.1 million in PE 64240F for the B-2 bomber, but contained no funds for integration of the small diameter bomb (SDB).

The committee understands the Air Force has identified a requirement to effectively engage and destroy moving targets, but that global positioning system weapons have a limited ability to prosecute moving targets. The committee notes that with further research and development the SDB could have the potential to engage moving targets and the Chief of Staff of the Air Force has included integration of the SDB on the B-2 platform as an unfunded priority.

The committee recommends $251.3 million, an increase of $7.2 million in PE 64240F for development and integration of the SDB for the B-2 bomber.

Biostatic protective clothing

The budget request contained $5.2 million in PE 48011F for special tactics/combat control, but contained no funds for biostatic protective clothing.

The committee understands Air Force Special Operations Command (AFSOC) special tactics teams and forward combat air controllers operate in harsh environments and conditions that require extreme physical exertion for extended periods of time. The committee is aware that recent developments in clothing technology indicate better materials are available for undergarments which will reduce the effects of moisture on the body as well as provide superior antimicrobial characteristics. The committee believes these materials could benefit the combat airman and consequently improve performance in prolonged harsh combat conditions.

The committee recommends $7.9 million, an increase of $2.7 million in PE 48011F for the rapid development and fielding of biostatic protective clothing for AFSOC.

C-130 airlift squadrons

The budget request contained $188.1 million in PE 41115F for C-130 development programs, but contained no funds for development of the automated inspection, repair, corrosion and aircraft tracking (AIRCAT) system.

The AIRCAT system develops tools for collection and analysis of data for the purpose of instituting a condition-based maintenance (CBM) program on the C-130 aircraft. The committee understands CBM techniques are used in many aviation activities because they improve fleet maintenance planning and management, improve safety through a better awareness of flight worthiness, and reduce total ownership costs. The committee also understands that the Department of the Air Force has invested over $10.0 million on this effort to date, and believes that this program should be continued.

The committee recommends $195.2 million, an increase of $7.1 million, in PE 41115F for C-130 development programs for the AIRCAT system.

This program will continue to assess existing space infrastructure, Air Force space requirements, and gaps in space infrastructure.

The committee recommends an increase of $1.0 million in PE 35159F for the continued support of the California Space Infrastructure Project.

Combat search and recovery vehicle

The budget request contained $290.1 million in PE 64261F for the development of personnel recovery systems, containing 280.0 million for the combat search and rescue vehicle-X (CSAR-X) development program.

The CSAR-X program is developing the next generation personnel recovery vehicle, which will replace the current HH-60G Pave Hawk helicopter, and provide increased capabilities of speed, range survivability, cabin size, and high-altitude hover operations. The Department of the Air Force anticipated beginning CSAR-X integration and demonstration activities in early fiscal year 2007, but these activities have been delayed by bid protests, which were subsequently sustained, and will require the Department of the Air Force to re-solicit bids for the CSAR-X program. As a result of this delay, the committee notes that the Government Accountability Office (GAO) reported that this program exceeds the fiscal year 2008 requirements by $153.3 million. The committee further notes that the Department of the Air Force CSAR-X program office agreed with the GAO recommendation that the CSAR-X budget request could be reduced by $153.3 million.

The committee recommends $136.8 million, a decrease of $153.3 million, in PE 64261F for the CSAR-X development program.

Communications support environment

The budget request did not contain funds in PE 27277F for the Hawaii National Guard communications support environment (HCSE) program.

The HCSE program would be a new program that would develop and demonstrate a robust and integrated information sharing and communications capability necessary to coordinate the activities of military, civilian, and interagency authorities in the event of a homeland security or homeland defense crisis event in the state of Hawaii. The committee notes that the National Guard Bureau is pursuing validation of the Joint Continental United States Communications Support Environment (JCCSE) program, which extends trusted information capabilities from the Department of Defense, through the Joint Force Headquarters in the states, to an incident site during a crisis event, and understands that the JCCSE will provide increased communications necessary for information exchange; direct communications among first responders, state and national authorities; and deployable communications. The committee believes that the capabilities of the JCCSE should be extended to the state of Hawaii with the HCSE.

The committee recommends $3.0 million in PE 27277F for the HCSE.

Electro-magnetic interference grid fabrication technology

The budget request contained $39.7 million in PE 63112F for the development of various advanced materials for weapons, but contained no funds for development of electro-magnetic interference (EMI) grid fabrication technology.

The committee understands that the F-35 requires sensor suite windows that are integrated into the aircraft's fuselage, which will exhibit precise EMI shielding characteristics through the use of shielding grids on those sensor surfaces. Such EMI shielding would allow the F-35's sensors to function in the presence of EMI. However, the committee further understands that there are significant challenges in the fabrication of EMI shielding grids, and no domestic commercial vendors are currently capable of EMI shielding grid production.

The committee recommends an increase of $4.0 million in PE 63112F to develop fabrication and coating technologies for the production of high-precision EMI shielding grids that exhibit performance stability over time and when subject to changing temperatures.

This program will develop more reliable electronics for military applications.

The committee recommends an increase $2.0 million in PE 34111F for the Carbon Nanotube-based Radiation Hard Non-Volatile RAM program.

Enhanced smart triple ejector rack

The budget request contained $17.0 million in PE 65011F for development of various products and services to improve the performance of aging aircraft systems, but contained no funds to expedite the development of and to initiate low-rate initial production (LRIP) activities for the enhanced smart triple ejector rack (ESTER) program.

The ESTER program is developing an upgrade to the triple ejector rack-9A (TER-9A), which is currently used on the Department of the Air Force's A-10 and F-16 fleets. The committee understands that the TER-9A is unable to carry precision-guided munitions (PGMs) such as the joint direct attack munition or the wind-corrected munitions dispenser, but that the ESTER upgrade would allow the carriage of up to three PGMs on each of the A-10 and F-16 weapons carriage stations. The committee also understands that the Department of the Air Force has an immediate requirement to increase PGM carrying capacity of its A-10 and F-16 fleets, and believes that the ESTER program will meet this requirement.

The committee recommends $21.5 million, an increase of $4.5 million in PE 65011F to expedite the development of and to initiate LRIP activities for the ESTER program.

Global Positioning System IIF, satellites 13-15

The budget request contained $120.9 million in PE 35165F for Global Positioning System (GPS) IIF.

The GPS constellation currently supports the military as well as civil and commercial endeavors around the world. The committee recognizes the importance of maintaining this capability without the possibility of a gap due to the large number of users relying on the GPS system. The committee also understands the desire to include new capabilities such as more accurate position and timing data, anti-jam, and a new civil signal compatible with the European positioning system Galileo.

However, the committee believes the strength of the GPS systems is in the continuity of operations and availability of the GPS signals. The committee considers procuring additional GPS IIF satellites as the best solution for maintaining the GPS capability used by the warfighter. In addition, this recommendation will allow for the ground system and user equipment to leverage the capabilities resident on the satellites.

The committee recommends $160.9 million, an increase of $40.0 million to conduct parts obsolescence studies for GPS satellites 13-15.

The committee is aware that the Under Secretary of the Air Force is taking steps to develop a block approach for development and fielding of the next-generation GPS satellite constellation. However, the committee is concerned by the Air Force's decision to pursue a new acquisition and competition before resolving the problems on the current GPS IIF program. In addition, the committee questions the operational utility of the proposed GPS III systems when current (M-Code) capabilities cannot be used by the warfighter due to delays in the user equipment and ground systems upgrades. Furthermore, the committee is concerned about the delay in fielding the ground system to command and control the current GPS constellation and recommends the Department of the Air Force focus resources on enhancing this system to effectively use space-based capabilities.

The committee notes the need for future enhancements such as cross-links, anti-jam capabilities, and more accurate clocks. The committee recommends the Department of the Air Force pursue technology maturation and risk-mitigation efforts on these areas for inclusion on a future evolution of the GPS IIF satellite system.

The committee recommends $437.2 million, a decrease of $150.0 million, in PE 63421F to the GPS III program.

However, the budget request contained no funds for continued competition in this program that will provide the Department of Defense (DOD) with a more robust capability to operate in a projected threat environment.

The United States maintains GPS for the benefit of military and civilian users worldwide. Military dependence on this system continues to grow at a rapid rate and now covers ground, sea, air, and space users. Increasingly, GPS is being targeted by systems capable of jamming the signal, denying the use of the GPS constellation. The DOD's strategy for combating this jamming has been to develop the (M-Code) signal and corresponding user equipment highly resistant to GPS jamming. M-Code is already being transmitted from space and the Air Force is moving toward a full constellation on-orbit; however, user equipment development is lagging behind.

Furthermore, the committee notes the budget request did not allocate sufficient funding to support the requirements of the current MUE received card development contracts, which were originally intended to preserve the industrial base, mature the information assurance approach, and reduce the total ownership cost to the government for next generation receivers. This action will significantly impact the GPS user equipment industrial base and will fail to provide the user with the best technical, cost effective solution for position, navigation, guidance, and identification.

The committee recommends $156.5 million, an increase of $63.2 million in PE 35165F to support accelerated development of user equipment.

High Accuracy Network Determination System

The budget request contained no funds for High Accuracy Network Determination System (HANDS).

HANDS addresses critical space situational awareness needs and reduces the potential for collisions of space assets by reducing errors in the current space-object maintenance catalog, as well as supplements the catalog with system characterization information.

The committee recommends an increase of $10.0 million in PE 63444F for the HANDS program.

High Integrity Global Positioning Systems

The budget requests contained $70.0 million in PE 63422F and $10.0 million in PE 1160403BB for development of the capabilities associated with the High Integrity Global Positioning System also called iGPS.

The funds have been directed to develop receivers using the iGPS constellation concept of integrating signals from the Iridium constellation with the GPS constellation creating better timing and accuracy, and some potential anti-jam capabilities. The benefits of this approach have not been sufficiently proven and the committee does not recommend funding either of these requests.

The committee recommends no funds in PE 63422F and in PE 1160403BB for development of the capabilities associated with the High Integrity Global Positioning System.

Inductive thermography inspection equipment

The budget request contained $203.6 million in PE 41119F for C-5 airlift squadrons, but contained no funds for inductive thermography inspection equipment.

The committee understands that C-5 aircraft are experiencing cracks in the upper aft crown skin and the aft section of the torque deck. Traditional non-destructive inspection (NDI) techniques are costly and time intensive for maintenance personnel. The committee notes that alternative NDI techniques used by Air Force maintenance personnel on other aircraft, such as inductive thermography, can be more cost effective to detect weaknesses in airframe structures. However, inductive thermography equipment has not been developed for inspections on C-5 aircraft.

The committee recommends $205.6 million, an increase of $2.0 million in PE 41119F for C-5 airlift squadrons, and for development of inductive thermography equipment for C-5 aircraft.

The Intelligent Free Space Optical Satellite Communications node can support the development of light-weight, low-cost, space qualified laser communications hardware.

The committee recommends an increase of $4.0 million in PE 63401F for continued development of the Intelligent Free Space Optical Satellite Communications Node.

Joint Strike Fighter

The budget request contained $1.8 billion in PE 64800F, and $1.7 billion in PE 64800N, for development of the Joint Strike Fighter (JSF), but contained no funds for development of a competitive JSF propulsion system.

The competitive JSF propulsion system program is developing the F136 engine, which would provide a competitive alternative to the currently-planned F135 engine. In the committee report (H. Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007, the committee recommended an increase for the JSF competitive propulsion system, and notes that the other three congressional defense committees also recommended increases for this purpose. Section 211 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) required that the Secretary of Defense, acting through the Department of Defense Cost Analysis Improvement Group, the Comptroller General, and a federally funded research and development center each provide an independent lifecycle cost analysis of the JSF propulsion system, which would include a competitive engine program by March 15, 2007. On March 22, 2007, the Subcommittees on Air and Land Forces and Seapower and Expeditionary Forces held a hearing, which included witnesses from the Department of Defense, the Institute for Defense Analyses, and the Government Accountability Office (GAO), to receive testimony regarding their findings on the JSF propulsion system. The committee believes the results of these studies were, in the aggregate, inconclusive on whether there would be a financial benefit to the Department in continuing to develop a competitive propulsion system for the JSF program. However, the committee notes that all studies identified significant non-financial factors of a two-engine competitive program, which include: better engine performance; improved contractor responsiveness; a more robust industrial base; increased engine reliability; and improved operational readiness. The committee believes that the benefits, which could be derived from the non-financial factors, favor continuing the JSF competitive propulsion system program, and recommends an increase of $480.0 million for this purpose.

The committee recommends $1.8 billion in PE 64800N, an increase of $115.0 million, and directs that $240.0 million of the recommended funds be used for the competitive JSF propulsion system program; and $1.9 billion in PE 64800F, an increase of $115.0 million, and directs that $240.0 of the recommended funds be used for the competitive JSF propulsion system program.

Additionally, the committee recommends a provision (section 213) that would require the Secretary of Defense to obligate sufficient annual amounts to develop and procure a competitive propulsion system for the JSF program, in order to conduct a competitive propulsion source selection, from funds appropriated pursuant to an authorization of appropriations or otherwise made available for research, development, test, and evaluation, and procurement for the JSF program. The committee notes that current plans for the competitive JSF propulsion system would complete the development of the competitive propulsion system so that a competition for the JSF propulsion would occur in fiscal year 2012 with the sixth lot of low-rate initial production aircraft.

KC-X

The budget request contained $314.5 million in PE 41221F for KC-X, the Air Force's next generation aerial refueling aircraft and the replacement for the KC-135 aircraft.

The committee notes that prior year unobligated appropriations of $173.5 million are available for execution of the KC-X development program. The committee notes that the system development and design contract award was expected in fiscal year 2007, but has been delayed until fiscal year 2008. Further, the request for proposal issued to industry by the Air Force on January 30, 2007 identified $250.0 million as the likely funding level available for KC-X developmental activities in fiscal year 2008. The committee fully supports recapitalization of the KC-135 fleet and understands that a decrement to the funding request for fiscal year 2008 should not have a significant impact to program execution.

The committee recommends $114.5 million, a decrease of $200.0 million in PE 41221F for KC-X development.

Lightweight, compact transmitter for imaging laser radar

The budget request contained $57.8 million in PE 62602F for conventional munitions, but contained no funds for a lightweight, compact transmitter for imaging laser radar.

The committee recommends an increase of $4.8 million in PE 62602F for a lightweight, compact transmitter for imaging laser radar.

Low emission hybrid electric engine propulsion

The budget request contained $11.0 million in PE 78611F for support systems development, but contained no funds for the testing of low-emission and fuel-efficient hybrid electric engine propulsion systems for Air Force heavy tactical wheeled vehicles such as aviation refueling trucks.

The committee is aware that existing Air Force aviation refueling trucks operate over short distances in a manner that causes high fuel use, high emissions and decreased engine life.

The committee notes that a first-generation hybrid electric vehicle has been delivered to the Air Force for testing and understands this technology could potentially be 40 percent more fuel efficient.

The committee recommends an increase of $5.0 million in PE 78611F for the continued refinement in system development and demonstration of low emission and fuel efficient hybrid electric engine propulsion for aviation refueling trucks.

Metals Affordability Initiative

The budget request contained $39.7 million in PE 63112F for advanced materials for weapon systems.

The committee supports the continued government-industry collaboration provided through the Metals Affordability Initiative, providing significant improvements in the manufacturing of specialty metals for aerospace applications for the government and private sectors of the aerospace industry, and providing improved affordability of aerospace materials.

The committee recommends an increase of $14.0 million in PE 63112F for the Metals Affordability Initiative.

National Security Space Integration

The committee reaffirms its belief that the integration of black, classified, and white, unclassified, space activities enhance national security and provide the best possible suite of capabilities to meet the needs of the warfighter, intelligence analyst, and policy-maker. Given the challenges associated with space acquisitions including the expensive nature of modern satellite development programs and a limited cadre of space professionals, it is in the national security interests of the United States for the black and white space communities to work together to coordinate and cooperate on space capabilities, technologies, and resources; leverage expertise; promote greater information sharing; and minimize duplication wherever feasible.

The committee encourages the Department of the Defense and the Intelligence Community to place greater emphasis on black and white space integration in the areas of: joint planning and acquisition; technology development; operations and greater integration across ground architectures; and space professional development.

Operationally Responsive Space

The budget requests contained $87.0 million in PE 64857F for development of Operationally Responsive Space (ORS) systems.

The committee acknowledges efforts by the Department of Defense to establish an ORS program office and budget resources for this mission area. In light of the recent Chinese anti-satellite test and other growing threats to space, the committee reaffirms its support for ORS.

The committee has provided direction in previous legislation that ORS shall consist of low-cost, rapid reaction payloads, busses, spacelift, and launch control capabilities. The committee is concerned the Department has not balanced the resources in the ORS account to address each of these areas, with a majority of the request going towards acquisition of existing spacelift systems. The committee encourages the Department to re-balance the fiscal year 2008 resources across existing launch vehicle purchases, responsive launch vehicle development, responsive payload and bus development, and responsive launch control capabilities.

In addition, the committee requests the Department continue to support joint ORS activities with the services, agencies, research labs, Defense Advanced Research Projects Agency, and industry as these organizations bring core competencies and expertise to the development of ORS capabilities.

The committee recommends $117.0 million, an increase of $30 million in PE 64857F for the development efforts associated with responsive launch and payload design and testing.

Optical maximum entropy verification

The budget request contained $108.1 million in PE 62204F for aerospace sensors, but contained no funds for enhancing the security of the common access card.

The committee supports the optical maximum entropy verification technology, which began as a U.S. Air Force demonstration program, and the Genus II open architecture, Java programmable terminal, to satisfy several critical military, government, and commercial security requirements on a global scale.

The committee recommends $114.1 million, an increase of $6.0 million in PE 62204F to produce initial integrated systems to address Department of Defense security requirements for the Common Access Card. The committee further encourages the Navy and Army to consider participation in this program.

Radiation Hardened Electronics

The budget request contained no funds for the Systematic Approach to Radiation Hardened Electronics program.

The committee recommends an increase of $95.0 million for the Air Force unfunded requirement #22, Classified--Space Situational Awareness program.

Strategic airlift transformation and integration modeling

The budget request contained $11.1 million in PE 78611F for support systems development, but contained no funds for strategic airlift transformation and integration modeling (SATIM).

The committee understands that the SATIM program seeks to improve strategic aircraft availability and reduce total ownership costs by identifying maintenance process improvement opportunities, inserting technology into recommended solutions, and including private industry best practices in maintenance tracking and planning at air logistics centers. The committee notes that previous SATIM efforts have streamlined and automated maintenance processes to reduce manual research and lower personnel dwell time on resolving maintenance issues.

The committee recommends an increase of $4.0 million in PE 78611F for support systems development for SATIM.

Wideband Global System laser communication integration

The committee is interested in the possibilities of integrating a laser communications packages on Wideband Global System satellites. The committee believes pursuing an early demonstration and integration of laser communications capability will provide a migration path for this critical technology into the communications architecture. This approach will allow user equipment to experiment with laser communication capabilities before a more robust system, like the Transformational Communications satellite, is available.

The committee is aware that existing FPM methodologies date back to the early 1990s and may not adequately support current and future mission planning requirements Special Operations Forces (SOF) aviation. The committee commends efforts to address this risk area. The committee notes one solution, which strengthens the link between aircraft performance prediction and mission planning. The committee has been informed that the same solution also includes an attempt to create a more open and modular development architecture to accommodate dynamic computational algorithms, and promises an improvement in the integration of other techniques to model aircraft performance. The committee supports such efforts as a means to dramatically reduce mission performance calculations.

As a result, the committee recommends an increase of $5.0 million in PE 11644BB for Advanced Mission Planning Tools for SOF aviation.

Airborne network gateway

The budget request contained $40.0 million in PE 63662D8Z for networked communications capabilities, containing $20.0 million for airborne network gateway.

The airborne network gateway project is sponsored by the Office of the Secretary of Defense to increase understanding of airborne tactical relays, to assess the maturity of data link, network, and voice communications, and to conduct field demonstrations to assess military utility. The committee believes this effort is redundant with the U.S. Air Force's Objective Gateway and feels any work in this area should be addressed by the service program so that it will more adequately meet service-defined needs.

The committee recommends $20.0 million, a decrease of $20.0 million, in PE 63662D8Z for the airborne network gateway.

The committee's recommendations for ballistic missile defense programs are based on: (1) the objective of deploying systems to defend the United States, our deployed troops and allies against real threats; (2) concerns about the effectiveness of MDA's operational testing activities; and (3) the amount of funding for missile defense programs relative to other national defense priorities.

In the conference report (H. Rept. 109-702) accompanying the John Warner National Defense Authorization Act for Fiscal Year 2007, the conferees stated that it is the policy of the United States that the Department of Defense accord priority within the missile defense program to the development, testing, fielding, and improvement of effective near-term missile defense capabilities, including the ground-based midcourse defense system, the Aegis ballistic missile defense system, the Patriot PAC-3 system, the Terminal High Altitude Area Defense system, and the sensors necessary to support those systems. For a number of years, the committee has been concerned that the missile defense program has been too focused on long-term research and development efforts at the expense of testing and deploying capabilities that defend the United States, deployed troops and our allies from current and near-term threats. The committee's recommendations accord priority within the budget to programs that deliver more near-term capability to the warfighter at the expense of several long-term research programs.

The committee believes that missile defense capabilities should be operationally tested before deployment. Over the past several years, MDA has taken significant steps to improve its testing program. These changes resulted in a successful intercept test of the ground-based, midcourse defense (GMD) system in September 2006, the first successful intercept test since 2002. That said, challenges remain with regard to MDA's testing program. In a March, 2007 Government Accountability Office (GAO) report titled `Missile Defense Acquisition Strategy Generates Results but Delivers Less at Higher Cost,' the GAO stated that while the September 2006 flight test exceeded its objectives, `it is too early to assess whether MDA will achieve its overall performance goals for the Block 2006 fielded configuration. The goal itself has been lowered in the past year, and MDA's models and simulations have not yet been anchored by sufficient flight tests to have confidence that predictions of performance are reliable.' In testimony before the Subcommittee on Strategic Forces on March 27, 2007, the Director of Operational Test & Evaluation stated that `to be confident in my assessment of the effectiveness [of the ballistic missile defense system] I need validated models and simulations. . . . They don't exist today because MDA doesn't have enough flight data to anchor them.'

Since 1985, the United States has spent over $107.0 billion on research, development and deployment of ballistic missile defenses. The committee believes that, during this period, MDA has been accorded higher priority than other pressing national security needs. While the committee recommends robust funding for missile defense programs, it also recommends slowing or restructuring programs that do not address the near-term threats to the United States, our deployed troops and allies.

The committee recommends $8.1 billion, a decrease of $764.2 million, for the activities of the Missile Defense Agency.

Aegis BMD is intended to provide protection against short-, medium-, and intermediate-range ballistic missiles. The committee believes that Aegis BMD provides a near-term capability that will help defend our forward deployed forces and allies and notes that the recent Capabilities Mix Study completed by U.S. Strategic Command has indicated that combatant commanders require twice as many SM-3 interceptors than the 147 that are currently planned.

The committee recommends $1.1 billion, an increase of $78.0 million, in PE 63892C for Aegis BMD. Of the recommended increase, $22.0 million is for accelerating ballistic missile defense signal processor upgrades; $20.0 million for facility upgrades that will increase the capacity to manufacture four or more missiles per month of the SM-3 Block IB missile in fiscal year 2010; and $36.0 million is for long-lead procurement of an additional 12 SM-3 Block IB missiles.

Arrow Weapons System

The budget request contained $73.5 million in PE 63881C for continued work on the joint United States-Israeli Arrow Weapons System.

The committee continues to support the Arrow system, which provides Israel the capability to defend itself against short- and medium-range ballistic missiles.

The committee recommends $73.5 million in PE 63881C for the joint U.S.-Israeli Arrow Weapons System, the amount of the budget request.

The committee notes that the C2BMC system became operational in 2006 and provided the combatant commanders' command, control, battle management, and communication tools to optimize the ballistic missile defense system. The committee is concerned that C2BMC suites have still not been installed at the U.S. Central Command (USCENTCOM), U.S. European Command (USEUCOM), and U.S. Forces Korea (USFK) headquarters. Given the importance of this capability to the warfighter, the committee recommends that the MDA provide USCENTCOM, USEUCOM, and USFK some C2BMC capability in fiscal year 2008.

The committee recommends $259.0 million in PE 63895C for the BMD C2BMC system, the amount of the budget request.

Ballistic Missile Defense joint warfighter support

The budget request contained $48.7 million in PE 63898C for Ballistic Missile Defense joint warfighter support, a decrease of $5.6 million from the fiscal year 2007 budget request.

The committee believes that this program, located at the Joint National Integration Center near Colorado Springs, Colorado, is critical to ensuring that the warfighter is able to effectively train and operate the Ballistic Missile Defense system and is concerned by the decision to decrease funding.

The committee notes that program-wide support costs for the sensors segment have grown by over one hundred percent from their fiscal year 2007 level. The committee believes the increase in program-wide costs to be excessive and recommends a level more consistent with past years.

The committee recommends $728.2 million, a decrease of $50.0 million, in PE 63884C for BMD sensors.

The committee questions the continued need for the Missile Defense Agency (MDA) to have its own intelligence office. While the Office of Intelligence and Security performs necessary security functions, the committee believes that the MDA should rely on the Intelligence Community to conduct intelligence support and provide the Director and the various MDA elements with up-to-date information on missile threats. This point is even more relevant given the fact that MDA will re-locate the majority of its personnel and programs to Redstone Arsenal in Huntsville, Alabama, over the next several years, where it will be co-located with the Defense Intelligence Agency's Missile and Space Intelligence Center, one of the nation's primary resources for intelligence on ballistic missiles. The committee is also concerned about large increases in the requested funds for BMD core programs when the requested funding for other important programs has been reduced.

The committee recommends $432.0 million, a decrease of $50.0 million in PE 63890C for ballistic missile defense core programs. Furthermore, the committee recommends that no funds be provided for the intelligence activities of the Office of Intelligence and Security and that the office's responsibilities be re-focused on security and counterintelligence-related activities.

Ballistic Missile Defense system space programs

The budget request contained $27.6 million in PE 63895C for the Ballistic Missile Defense (BMD) system space programs.

Section 222 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) requires the Director of the Missile Defense Agency to submit a report to the congressional defense committees prior to the testing or deployment of space-based interceptors. Since the committee has yet to receive such a report, the committee recommends no funds for the space test bed.

The committee recommends $17.6 million, a decrease of $10.0 million, in PE 63895C for BMD system space programs, and recommends that no funds be provided for the space test bed.

The committee notes the importance of nearer-term missile defense priorities, and recommends $108.5, a decrease of $10.0 million in PE 63175C BMD technology.

Boost defense segment

The budget request contained $548.7 million in PE 63883C for the boost defense segment, primarily for work associated with the Airborne Laser (ABL).

Over the past several years, the Missile Defense Agency (MDA) has said that a decision on whether it moved forward with either the ABL or the Kinetic Energy Interceptor (KEI) as the primary boost phase defense system would be made by fiscal year 2008. However, earlier this year, the date for the ABL's lethal shoot-down demonstration slipped for the fourth time, and has been pushed to September 2009. Given the high-risk nature of the ABL program and its history of past delays and cost increases, the committee has little confidence that this date will not slip into 2010 or possibly later. The committee does not believe it is prudent to continue to spend over $500.0 million a year on a high-risk program that will provide very little near-term capability. Therefore, the committee believes that a decision must be made whether to move forward with either ABL or KEI.

In March 2006, the MDA submitted a report to Congress titled `Assessment of Boost and Ascent Phase Missile Defense Capabilities,' which was required by section 231 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163). This report has led the committee to question whether ABL is a viable operational system. The committee is also concerned about the potential costs associated with the ABL. The MDA estimates that total research and development costs for the first ABL aircraft through the current 2009 lethal shoot-down demonstration will cost $5.1 billion. Additionally, according to estimates by the Congressional Budget Office, future ABL aircraft could cost $1.5 billion per aircraft, based on an initial fielding run of seven aircraft. If we continue to move forward on the present course, the nation could potentially spend over $20.0 billion on ABL to obtain very limited capability.

The committee is also concerned that it will be some time before any militarily significant ABL capability will reach the field. The MDA has stated that it would take at least three, but potentially more, ABL aircraft to maintain a full ABL orbit. Assuming that there are no further delays in the ABL program, it is unlikely that we would see the first full ABL orbit, 3-5 aircraft, until the 2018-2020 timeframe. Given the threats the nation faces, the committee believes that it would be more prudent to invest in more mature near-term missile defense systems.

The committee recommends $298.8 million in PE 63883C, a decrease of $250.0 million to restructure ABL into a technology demonstration program and to leave open the option of a lethal shoot-down demonstration in the future should the technology prove viable.

European missile defense site

The budget request contained $2.5 billion in PE 63882C for the ballistic missile defense (BMD) midcourse defense segment. Of this amount, approximately $216.0 million is for the establishment of a ground-based, midcourse (GMD) interceptor site in Europe.

In the committee's report (H.Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007, the committee stated that it believed it was premature to invest in the third site until the existing block 2004/2006 GMD configuration completed integrated end-to-end testing. The committee notes that the Missile Defense Agency (MDA) has still not fully completed successful end-to-end testing of the block 2004/2006 GMD configuration. Furthermore, while the United States has begun negotiations with Poland and the Czech Republic about the potential deployment of missile defense capabilities on their territories, the committee notes that no formal agreements have been reached. The committee is reluctant to authorize funds for a project that could cost over $4.0 billion when Congress has not yet received an agreement outlining the terms under which those funds would be expended. Accordingly, the committee recommends no funds for construction of the third site.

With respect to long-lead procurement for third site interceptors, the committee recommends $42.7 million, to continue long-lead procurement of ten additional GMD interceptors. The committee notes that the fiscal year 2008 budget justification materials indicate that these interceptors could be used at a European site or for expanded inventory at Fort Greely, Alaska. That said, the committee is aware that MDA plans to deploy a two-stage version of the current ground-based interceptor in Europe, and notes its concern with MDA's proposed testing plan and risk reduction strategy for that missile.

The committee strongly supports the need to work closely with our North Atlantic Treaty Organization (NATO) allies to defend against ballistic missile threats. However, the committee has concerns with the Administration's current approach to proceed with the deployment on a bilateral basis without NATO's full support. The committee recommends that the Administration focus its efforts in the coming months on placing its proposal within a strong NATO foundation. Furthermore, the committee also believes that any future missile defense system deployed in Europe should be part of a larger system that can protect all of NATO's European allies, and must be fully interoperable with the missile defense system that NATO is developing to defend against short- and medium-range threats.

The committee directs the Secretary of Defense and the Secretary of State to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services by January 31, 2008. The report shall include the Administration's plans for obtaining NATO's support for its proposal; how the proposed system will interoperate with the NATO missile defense system; its plan for providing missile defense protection for areas of Southern Europe; how other missile defense capabilities, such as Aegis Ballistic Missile Defense, Terminal High Altitude Area Defense, and Kinetic Energy Interceptor, could contribute to the defense of Europe; the reasons for moving to a two-stage booster; the risk reduction strategy for that booster; the suitability of deploying the two-stage booster at Ft. Greely and Vandenberg Air Force Base; and the plan for testing the two-stage booster prior to deployment.

The committee believes that in the absence of the necessary international agreements, it is premature to fund construction of the European ground-based interceptor site or European radar site. To preserve the opportunity to move forward with the research and development components of this initiative, the committee has recommended $150.0 million for fiscal year 2008. Should the necessary international agreements with host countries be reached and further engagement with NATO be demonstrated in fiscal year 2008, the committee notes that the Department has the option of submitting a reprogramming request to Congress in fiscal year 2008 to fund site preparation activities. The committee recommendation of $150 million does not preclude the Department from spending the funds necessary for site surveys, studies, analysis and design. The committee also notes the importance it attaches to receiving, in a timely manner, the independent assessment of European missile defense options as described in section 225 of this Act.

The committee recommends $2.3 billion, a decrease of $160.0 million, in PE 63882C for the ground-based midcourse defense system.

Kinetic Energy Interceptor

The budget request contained $227.5 million in PE 63886C for the Kinetic Energy Interceptor (KEI) program.

The KEI program successfully met its fiscal year 2006 knowledge points with no major delays. These successes involved the direct downlink from overhead and terrestrial sensors, and the static firings of the first and second stages of the booster. The KEI program is on schedule to conduct its first booster flight test during the fourth quarter of fiscal year 2008. Given the committee's decision with regard to the Airborne Laser, the committee recommends that the Department of Defense designate KEI as its prime boost phase defense system. Furthermore, the committee notes that KEI will also have the capability to intercept ballistic missiles in their midcourse phase of flight and could serve as an eventual replacement for the existing ground-based interceptor. The Missile Defense Agency is also examining future options for providing a mobile KEI capability. The committee believes that there is an inherent flexibility in having mobile missile defense systems and recommends that the future KEI development efforts be focused on the development of mobile options. However, given the importance of nearer-term missile defense priorities, the committee has recommended a reduction of the KEI program, with the understanding that the program will continue towards a booster flight test demonstration in 2008.

The committee recommends $177.5 million in PE 63886C for the KEI, a decrease of $50.0 million.

Missile defense cooperation with Japan and Australia

The committee strongly supports the Department of Defense's on-going missile defense cooperative efforts with Japan and Australia. The committee encourages the Department to build on and expand such engagements with other allies in the Asia-Pacific region, and around the world, as a key part of the nation's comprehensive strategy for responding to the threat posed by the proliferation of ballistic missiles and weapons of mass destruction.

Multiple Kill Vehicle

The budget request contained $271.1 million in PE 63894C for the Multiple Kill Vehicle (MKV).

The committee notes that the request is more than double the amount of funding in fiscal year 2007. The committee believes the amount of the request to be excessive for a program that is orientated toward longer-term threats. The committee also notes that the current family of exo-atmospheric kill vehicles are capable of dealing with the near- to mid-term threats that the nation is likely to face from rogue nations such as Iran and North Korea. Additionally, in budget justification materials, the Missile Defense Agency (MDA) notes that it plans to replace the unitary warhead on the SM-3 Block IIA missile, which the United States is co-developing with Japan, with the MKV. The committee is concerned that MDA has taken this decision without fully consulting with the Japanese Government and that this decision has the potential to delay the fielding the SM-3 Block IIA missile, a system that the committee believes is vital to the security of the United States and our allies around the world.

The committee recommends $229.1 million, a decrease of $42.0 million, in PE 63894C for the Multiple Kill Vehicle.

Space Tracking and Surveillance System

The budget request contained $331.5 million in PE 63893C for the Space Tracking and Surveillance System (STSS).

STSS is a space-based demonstration program designed to measure the ability of low-earth orbit satellites to track ballistic missiles from space. Missile Defense Agency (MDA) plans to launch two initial satellites in 2007 to demonstrate this capability. The committee believes that it is premature to move forward with a follow-on program until the two experimental satellites have demonstrated an initial capability to acquire, track, discriminate, and report ballistic missiles events. Furthermore, the committee requests that the Air Force, in coordination with the MDA, examine the applicability of the STSS demonstration system and the proposed follow-on system's ability to perform against the space situational awareness mission requirements. The committee supports fielding the two initial STSS demonstration satellites and evaluating the need for follow-on satellites.

The committee recommends $256.5 million, a decrease of $75.0 million, in PE 63893C for the Space Tracking and Surveillance System.

Special programs--Missile Defense Agency

The budget request contained $323.3 million in PE 63891C for special programs--Missile Defense Agency (MDA).

The committee recommends $153.3 in PE 63891C, a decrease of $170.0 million for special programs--MDA.

Terminal High Altitude Area Defense

The budget request contained $858.2 million in PE 63881C for the Terminal High Altitude Area Defense (THAAD) system, which is designed to protect against short-, medium-, and intermediate-range ballistic missiles.

The committee believes that THAAD will provide an improved capability to protect our deployed forces and our allies against ballistic missile threats. The committee supports the Missile Defense Agency's (MDA) recent decision to procure two additional THAAD firing units over the Future Years Defense Program, but notes that this is still inadequate to meet the current requirements of the combatant commanders. While THAAD recently completed its third successful intercept test, the committee is concerned about the recent decision by MDA to cancel three THAAD intercept tests, primarily for budgetary reasons. The committee notes again that the Director of Operational Test and Evaluation and the Government Accountability Office have indicated that MDA has not conducted sufficient flight testing to properly anchor its models. The committee recommends that MDA reconsider its decision to cancel the three THAAD flight tests.

The committee is also aware that several allied nations have expressed interest in the possibility of acquiring THAAD. The committee supports efforts to provide THAAD to our allies. However, the committee notes its concern that national disclosure policy has delayed the Department of Defense's ability to provide Israel THAAD-related information. The committee encourages the Secretary of Defense to take the necessary actions to ensure that our allies, such as Israel, will have access to this critical defensive capability. Finally, the committee encourages MDA to begin examining options for expanding the capabilities of THAAD in the future.

The committee recommends $858.2 million in PE 63881C for the Terminal High Altitude Area Defense system, the amount of the budget request.

Warfighter Involvement Program

The committee is aware that in January 2002 the Secretary of Defense exempted the Missile Defense Agency (MDA) from the normal requirements process. In order to address warfighter requirements, the U.S. Strategic Command (USSTRATCOM) and the MDA have established the Warfighter Involvement Program (WIP). The committee believes that it is essential that warfighter's requirements drive the missile defense development process and believes that the WIP has generally been a step in the right direction. However, the committee continues to have concerns about the role the warfighter is playing in the missile defense development process.

The committee directs the Commander, U.S. Strategic Command to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services on the WIP by October 31, 2007. The report shall address the role that USSTRATCOM played in the missile defense development process prior to the initiation of the WIP; the key elements of the WIP; the role USSTRATCOM plays in decisions by the MDA to initiate new missile defense programs; the role USSTRATCOM plays in the testing of the missile defense system, and the process for resolving disputes if there is a disagreement between the MDA and USSTRATCOM.

Basic research for combating weapons of mass destruction

The budget request contained $5.0 million in PE 61000BR for basic research into capabilities for combating weapons of mass destruction.

The committee is aware that the Counterproliferation Program Review Committee's May, 2006, report indicates that basic research for combating weapons of mass destruction is not funded sufficiently.

The committee recommends $10.0 million, an increase of $5.0 million, in PE 61000BR, for the Defense Threat Reduction Agency basic research initiative to further basic research for combating weapons of mass destruction.

Budget exhibits and program elements

The conference report (H. Rept. 109-360) accompanying the National Defense Authorization Act for Fiscal Year 2006, directed that the Comptroller General examine the fidelity of the Department of Defense's (DOD) research, development, test, and evaluation (RDT&E) program's budget justification materials' program element code structure and budget exhibits in providing complete and accurate information for congressional oversight.

The Government Accountability Office (GAO) found that the program element code structure as used by the Department does not provide adequate visibility into the types of development activities being conducted, is inconsistently applied among services and defense agencies, and often fails to comply with the DOD's own regulations and directives. Approximately one-third of RDT&E programs are improperly categorized as to major force program.

The GAO also found that DOD budget justification materials are difficult to understand or compare in many cases because the materials frequently lack information about the accomplishments from the previous year and the planned activity for the next year; often provide information that is vague; often incorrectly categorize programs and projects by budget activity; lack the required information; sometimes fail to provide cross references between projects; have inconsistent formats across the military services; often aggregate large and/or dissimilar projects within the same program, limiting visibility and oversight of movement of funds among projects within program elements; and frequently exclude key schedule data for projects and programs. As a result the budget justification materials do not provide consistent and complete data with the adequate levels of detail needed to understand DOD's planned efforts to provide the transparency needed to provide responsible oversight.

The committee therefore directs the Secretary of Defense to address the deficiencies with the current RDT&E budget justification displays. Commencing with the fiscal year 2009 budget request, DOD RDT&E budget justification materials shall:

(1) Ensure that program nomenclature titles reflect the content of the program request;

(2) Ensure that project titles and program titles be the same when there is only one project in the program element;

(3) Provide a summary table on the first page of the `R-2' of all projects within the program elements with the project identification code, name, and dollar amount for each project;

(4) Provide, in the case of all projects in budget activities four, five, and seven, project schedules and reflect year-over-year changes from the previous year's request; and

(5) Provide for, in the case of the Department of the Army, separate program elements for all projects shown in program elements 35204A and 23744A in the fiscal year 2008 budget request.

Commencing with the fiscal year 2010 budget request, the committee directs the Secretary of Defense to further modify the budget item justification materials, in addition to changes made for the fiscal year 2009 justification materials, as follows:

(1) Budget item justification shall comply with DOD's regulations and directives and shall be standardized among the military departments and agencies;

(2) Budget item justification shall separate the current accomplishments and planned program into two sections;

(3) Budget item justification shall report program changes at both the program and project level;

(4) Budget item justification shall identify financial and programmatic relationships and dependencies between projects regardless of budget activity or resource component. At a minimum, the program element and the project number shall be identified for dependencies between projects and this information shall be listed in all exhibits; and

(5) Budget item justification, for budget activities four, five, and seven, shall display program historical and projected milestones such as engineering milestones, acquisition milestones, test and evaluation events, and other key milestones, as applicable, so that current phase milestones and changes from the prior year can be determined.

Chemical and Biological Defense Program

The committee recommends continuation of the chemical and biological basic research, applied research, and advanced technology development initiatives established in the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375). These initiatives would provide opportunities for emerging technologies and concepts to compete for funding on the basis of technical merit and on the contribution that such technologies could make to the chemical and biological defense capabilities of the armed forces and to homeland defense.

The committee recommends that the technologies to be considered for funding under the chemical and biological advanced technology development initiative, would include, but would not be limited to the following:

(1) Advanced development of individual and collective protection systems to include air filtration systems and self-decontaminating surfaces; and

The committee recommends an increase of $8.0 million in PE 61384BP for the chemical and biological basic research initiative.

Contextual Arabic analysis program

The budget request contained $76.3 million in PE 63122D8Z for combating terrorism technology support, but contained no funds for machine translation tools to accurately translate blog and slang language on Arabic websites, blogs and chat rooms.

The committee notes the need for improved technologies to enhance contextual translation tools and refine dictionary sets, as well as the need for a corpus of information including specific taxonomies, definition sets, and collections of parallel translations for terms commonly used in the electronic domain that could be integrated into such translation tools.

The committee recommends an increase of $3.5 million in PE 63122D8Z to enhance a pilot project under development by the technical support working group, including validation testing and operational evaluation.

Defense Technical Information Center

The budget request contained $51.8 million in PE 65801KA for the Defense Technical Information Center (DTIC).

DTIC provides centralized information acquisition, processing, storage, retrieval, and dissemination of scientific and technical information for the Department of Defense. The DTIC's knowledge management and information technology applications improve information sharing among the service components and agencies, as well as with the other federal scientific organizations and industrial and academic organizations involved in scientific, technical, and engineering inquiry. The committee notes the important useful contributions that the DTIC has made to enhancing efficiencies and information sharing within the Department, but encourages DTIC to implement a customer-funded vice appropriations approach to work reimbursement.

The committee recommends $46.8 million, a decrease of $5.0 million in 65801KA to DTIC.

Enterprise license agreement

In the committee report (H. Rept. 109-89) accompanying the National Defense Authorization Act for Fiscal Year 2006, the committee directed the Department of Defense (DOD) to report on issues concerning enterprise licensing of commercial software. The results of that report reinforce the committee's belief that savings may be achieved and security enhanced in the procurement of commercial software applications by including specified provisions in the original procurement agreements issued by the Department. These provisions would require that the delivered software meet DOD configuration standards and that vendors would be required to update the software to meet any necessary Department-driven configuration changes. The committee notes that the Air Force entered into such an innovative agreement in June 2004 that has accomplished these results.

The committee believes the successful Air Force model should be implemented throughout the Department. Therefore, the committee urges the Under Secretary of Defense for Acquisition, Technology, and Logistics to apply a similar approach for the entire Department.

Foliage penetration reconnaissance and surveillance

The budget request contained $21.3 million in PE 11641BB for Special Operations technology development, but contained no funds for the development and demonstration of the foliage penetration reconnaissance and surveillance system.

The committee supports initiatives to employ innovative, multi-sensor tactical sensors in dynamic maritime environments and is aware of efforts sponsored by the Naval Service Warfare Center to fuse hyperspectral imaging and synthetic aperture radar applications. The committee recognizes such efforts as promising significant advancements in target discrimination, especially in littoral and riverine environments. The committee supports further development and testing of these efforts as well as attempts to reduce related size and weight requirements.

The committee therefore recommends an increase of $5.85 million in PE 11641BB to test, develop, and miniaturize the multi-sensor foliage penetration reconnaissance and surveillance system for maritime applications.

Human systems integration

The budget request contained $9.0 million in PE 63670D8Z for Human, Social and Cultural Behavior modeling advanced development, but contained no funds for Human Systems Integration (HSI).

The committee has reviewed the April, 2007 Department of Defense report on HSI, applauds its content, and supports the recommendations contained therein advocating for a more joint and comprehensive approach in this area. The committee recognizes the need to improve the overall performance of weapons systems, and accepts the view of the Department that HSI is but one contribution in a larger approach to effect a reduction in Total Ownership Costs in weapons systems development, training, and military operations. As a result, the committee encourages further attention to this enterprise and includes a legislative provision (section 231) requiring the Secretary of Defense to designate a senior official to coordinate and develop HSI-related activities and methodologies.

The committee recommends $21.0 million, and increase of $12.0 million, in PE 63670D8Z for the joint HSI effort.

Information assurance activities

The committee notes that maintaining freedom of action in cyberspace is increasingly important to military operations, as well as overall national security. The committee is aware that certain inadequacies exist across the government, which inhibit the systematic and effective conduct of cyberspace operations in the face of increasing state and non-state activity in this medium. While the Department of Defense (DOD) is working to improve its capabilities to conduct effective cyberspace operations, the committee is concerned that the Department may lack the resources, authorities, training and policy to conduct effective cyberspace operations to protect military systems, gain and maintain dominance and coordinate appropriately with interagency partners.

Therefore, the committee directs the Secretary of Defense to submit a report on the DOD cyberspace policy and operations to the congressional defense committees within 180 days after the enactment of this Act. A classified annex shall be submitted as required. The report shall provide:

(1) A review of the legal authorities, which govern the DOD's conduct of cyberspace operations, and recommendations to ensure effective cyberspace operations.

(3) An overview of the DOD's cyberspace organization, strategy, missions, programs, and capabilities.

(4) An assessment of the operational challenges the Department faces in protecting, defending, and operating in cyberspace, to include an assessment of the impact of the military's reliance on commercial communications infrastructures.

(5) An assessment and recommendation to improve DOD's ability to coordinate: intra-and interdepartmental cyberspace operations, especially with the law enforcement and intelligence communities and with the commercial sector and international allies. This assessment shall include specific consideration of the establishment of a single joint organization for cyberspace operations within the Department and recommendations to improve interagency participation in joint operations.

(6) An overview of the current and future training and education requirements, and recruiting and retention strategy required for the Department to conduct effective cyberspace operations. The overview shall include consideration of the development of a joint cyberspace corps of military and civilian personnel.

(7) An overview of current funding for cyberspace operations to include: a review of specific line items related to cyberspace operations; unfunded requirements and current research and development efforts; and an assessment of the need for a major force program for cyberspace operations.

Innovation for national security

The committee notes that a number of prominent studies have detailed the growth in global science and technology investment and intellectual capital, relative to that of the United States. At the same time, as articulated in the 2006 Quadrennial Defense Review, the national security situation has changed dramatically. Present and future adversaries are likely to use asymmetric means and agile application of technology against the United States.

In the face of these new threats, the committee is concerned that a strategic framework, which fails to build U.S. intellectual capital advantage, could increase risks to future U.S. national security. The committee commends the Department of Defense (DOD) for its recent efforts to attract and retain top-quality scientists and engineers through the National Defense Education Program. The committee is concerned, however, with the continued decline in the budget requests for DOD science and technology efforts, particularly basic research. This decline in DOD basic research comes at a time when the President has launched the American Competitiveness Initiative, aimed at increasing federal basic research funding and creating a new generation of scientists and engineers. Additionally, the Directors of the Office of Management and Budget (OMB) and the Office of Science and Technology Policy (OSTP) stated in a July 23, 2006 memorandum on the Administration's fiscal year 2008 research and development priorities that `high impact basic and applied research of the Department of Defense should be a significant priority.' Despite these recommendations, the budget request for defense basic and applied research fell below zero percent real growth for fiscal year 2008.

Therefore, the committee directs the Secretary of Defense to submit a report addressing DOD's responses to the recommendations of the National Academy of Sciences report, `Rising Above the Gathering Storm,' and the OMB/OSTP memorandum. The report shall include: (1) DOD's efforts to identify, support, and expand basic research in fields critical to meeting DOD's future technological needs; (2) DOD's estimate of the impacts of technology globalization to national security; and (3) steps that must be taken to ensure that the DOD's future scientific and technological workforce requirements, including those of the defense industrial base, can be satisfactorily met over the next 20 years. The report shall also outline a long-term, strategic plan for how the Department believes a sustained increase in funding for DOD basic research could be effectively utilized. The Secretary shall submit the report to the congressional defense committees by the distribution date of the fiscal year 2009 budget request.

In-transit visibility system

The budget request contained $11.3 million in PE 65013BL for information technology development, but contained no funds for facility and terminal management security.

The committee expects that the system employed will have the following features, including, but not limited to: creation and issuance of transportation worker identification credential compliant security passes; scanning capability for bar-coded security passes; picture identification verification; destination assignment within the facility; creation of customizable report; exact date and time record of entry; storage of video feed to disk or tape; and file share with local, state and/or federal law enforcement agencies. The system should provide for biometric closing and video loading identification. The system should be fully secured with secure socket layer technology and should be protected from brute force hacking attacks and from cross side server scripting. The system should not require investment in client/server architecture or installation of software.

The committee recommends $12.3 million, an increase of $1.0 million, in PE 65013BL to implement a complete gate and facility security and terminal management security module that works in real time.

Irregular Warfare Support

The budget request contained $32.7 million in PE 63121D8Z for SO/LIC Advanced Development, containing $2.1 million for Irregular Warfare Support (IWS).

The committee recognizes the importance of enhancing the counterterrorism and counterinsurgency capabilities of the Department of Defense (DOD) and understands that the IWS initiative leverages efforts within the Department and within other agencies to provide technical and operational capabilities in support of DOD activities and to facilitate greater awareness of the cultural and ideological challenges facing military personnel. The committee urges the Department to continue these efforts and explore additional approaches to irregular warfare capabilities, including an increased understanding of the specific cultural, social, ideological, economic, and political contexts for ongoing counterterrorism and counterinsurgency operations. The committee expects such efforts to include academic research in Jihadi ideology and strategic thought as well as enhanced efforts to produce, collect, centralize, and operationalize cultural knowledge.

The committee expects such efforts to also include unconventional countermeasures to improvised explosive devices, innovations in the development of explosive ordnance disposal capabilities, consideration of a role for foreign nationals in the U.S. Armed Forces, and non- lethal technologies and weaponry.

Therefore, the committee recommends an increase of $12.0 million in PE 63121D8Z for IWS to strengthen the DOD's capability to conduct effective counterterrorism and counterinsurgency operations, explore additional approaches as noted above, and to identify both intra- and interagency solutions to conduct successful operations.

The committee commends the Department of Defense's efforts to improve its business model for transitioning capabilities relevant to the warfighter in a more cost effective, timely, and efficient manner. The committee notes and agrees that new projects executed under the new JCTD model should focus more on joint and coalition needs and relevant capability requirements as defined by the combatant commanders. The committee also notes that eventually all new projects entering the JCTD process will be aligned with the traditional planning, programming, budgeting, and execution (PPBE) process to allow better transition into acquisition. The current JCTD program consists of several legacy advanced concept and technology demonstrations (ACTD) projects. The committee believes that these legacy projects do not fit the joint warfighter centric approach and are not aligned with the PPBE cycle. The committee is concerned that the Department will have difficulty transitioning some of these legacy projects into programs of record.

The committee recommends a decrease of $15.0 million, in PE 63648D8Z for joint capability technology demonstrations. The committee urges the Secretary of Defense to identify and apply the reductions to those programs that do not have strong Combatant Commander support and are at greatest risk of not being adopted by a program of record.

Joint command and control

The budget request contained $70.3 million in PE 33158K for the net-enabled command capability (NECC).

The NECC is intended to be the Department of Defense's principal command and control information technology system, enabling advanced collaborative information sharing through vertical and horizontal interoperability. As the net-centric migration path for the Global Command and Control System Family of Systems, the NECC will support force-level planning, execution, monitoring, and assessment of joint and multinational operations. The NECC will use net-centric enterprise services, core enterprise services, and will be able to exchange information across multiple security domains.

The committee believes that due to recent activity delays, the Defense Information Systems Agency will not be able to execute the full fiscal year 2008 request in the time remaining. Accordingly, the committee recommends $50.3 million in PE 33158K for joint command and control, a decrease of $20.0 million for the net-enabled command and control program.

Joint Experimentation program

The budget request contained $112.0 million in PE 63828D8Z for Joint Experimentation.

The Joint Experimentation program intends to improve joint-force mission requirements by partnering the services and defense agencies with the combatant commanders to address time-sensitive joint operational requirements. The committee believes this is an important objective, but notes that this effort is not adequately tied into the wider research and development requirements process, which has the potential to lead to unwarranted duplication of effort and inadequate oversight. Transferring the program element to the Director for Defense Research and Engineering (DDR&E) has the potential to remedy these concerns, but the committee notes that the DDR&E will need to better integrate Joint Experimentation into the overall suite of research and development programs to prevent overlapping activities and inefficient spending. The committee recommends a decrease of $10.0 million in PE 63828D8Z for the Joint Experimentation program.

Modeling and simulation (M&S) capabilities are important tools that provide a powerful complement to traditional forms of experimental development, often helping to reduce cost in time, funding, and manpower. The committee observes and is concerned that each service has its own distinct M&S capability, as well as those used by the functional commands. Additionally, the defense agencies, national laboratories, and other federal entities are also developing M&S capabilities to fit their unique needs. The committee notes that it is imperative that all M&S efforts be coordinated in order to reduce duplicative systems, harmonize requirements, and leverage the talents of the entire M&S workforce to provide a common architecture that can be effectively employed across the defense enterprise.

The committee is concerned that the JWSMO, formerly the Defense Modeling and Simulation Coordination Office, which was established to fill just that role, has not adequately carried out its coordination mission with the services and agencies to ensure commonality, reuse, and interoperability of existing and new M&S technologies.

Accordingly, the committee recommends $20.0 million, a decrease of $17.8 million, in PE 63832D8Z for the JWSMO.

License plate recognition initiative

The budget request contained $76.3 million in PE 63122D8Z for combating terrorist technology support, but contained no funds for license plate recognition systems.

The committee recognizes that license plate recognition systems can be powerful tools for homeland security and counter-drug applications, as well as traditional law enforcement. Many states are already making use of some such systems, which have up to 98 percent accuracy, and can reduce a month's workload to 24 hours. Privacy concerns are also ameliorated, as the system focuses on license plates and not the driver, and thus can tap into existing databases of license plate information.

The committee recommends an increase of $1.5 million in PE 63122D8Z to deploy systems with select military police units operating on and around military installations to test and validate data sharing linkages with the law enforcement, including development of tactics, techniques, and procedures for information sharing and privacy protection.

The committee is concerned that the MFEL program was not contained in the budget request. Our armed forces benefit every day from the developments of the MFEL program. MFEL is a peer-reviewed and merit-based program that has a proven track record of delivering combat casualty care technology and medical interventions. Most laser-based medical procedures used in surgery at military level three to level five hospitals for Operation Enduring Freedom and Operation Iraqi Freedom casualties have a research base and lineage from the MFEL program. The MFEL program developed, deployed, and has several ongoing programs in advanced diagnosis and treatment procedures for complex and sometimes unique medical challenges on the battlefield. These challenges include medical imaging, burn management, cauterization, and tissue repair.

The committee does not understand why such a successful program was not funded in the budget request. Not only will this action preclude new advances, but it will also terminate several successful interventions in mid-stream. The committee believes it is important to note that these medical advances will ultimately benefit all Americans.

Accordingly, the committee urges the Director, Defense Research and Engineering, to make available the necessary funds in fiscal year 2008 to support MFEL activities currently in progress. The committee further urges the Secretary of Defense to continue funding the MFEL program in the future budget requests.

The committee recommends an increase of $18.0 million in PE 62227D8Z for the MFEL program.

National Defense Education Program

The budget request contained $44.4 million in PE 61120D8Z for the National Defense Education Program (NDEP), containing $2.0 million for Materials World Modules (MWM); $13.0 million for Pre-engineering Modules; $24.0 million for Science, Mathematics and Research for Transformation (SMART); and $5.4 million for National Security Science and Engineering Faculty Fellowships (NSSEFF).

The committee understands the Department of Defense's efforts to shape its current and future technical workforce through fostering interest, recruitment, and retention across all levels of the science, technology, engineering, and mathematics (STEM) education pipeline. The committee notes that MWM currently supports high school students. The committee further notes that the Director, Defense Research and Engineering proposes a new K-12 program under NDEP called Pre-engineering Modules intended to address middle school students.

The committee is concerned that while the Department has provided evidence of effectiveness for MWM and has articulated plans to implement MWM throughout several states over the next few years, their fiscal year 2008 budget request contained $2.0 million for MWM, a decrease of more than half of the fiscal year 2007 budget request. The projected budget request for 2009 contained no funds for MWM. The committee further notes the budget request contained $13.0 million for Pre-engineering Modules, but failed to clearly identify the requirements for that level of funding, even after several attempts by the committee to ascertain the rationale.

Accordingly, the committee recommends $6.5 million dollars, an increase of $4.5 million, for MWM, $27.0 million, an increase of $3.0 million, for SMART $7.4 million, an increase of $2.0 million, for NSSEFF, and recommends $3.5 million, a decrease of $9.5 million, for Pre-engineering Modules.

Office of Force Transformation

The budget request contained $20.6 million in PE 65799D8Z for the Office of Force Transformation (OFT).

The committee notes OFT is expecting to sponsor research, prototyping, and operational experimentation intended to support transformational activities. While the committee strongly supports Department of Defense efforts in these areas, the committee believes that OFT's activities overlap significantly with similar efforts with the Defense Advanced Research Projects Agency, the service laboratories, and other defense agency experimentation programs.

The committee recommends $12.0 million, a decrease of $8.0 million, in PE 65799D8Z for the Office of Force Transformation. The committee encourages the Department to leave funding intact for the development of active protection systems.

Posture review of critical infrastructures

The committee understands the interdependent nature of critical Department of Defense (DOD) and national civilian infrastructures and is concerned that vulnerabilities in one may constitute a vulnerability in the other. The committee understands that mission essential DOD assets and infrastructures are reliant on civilian infrastructure to carry out warfighting activities and can be affected by accidents and natural disasters as much as terrorist events. The committee notes, for example, DOD information and technology systems are not only reliant on commercial bandwidth in many cases, but also on the underlying commercial power grid.

The committee strongly believes that the Department needs to articulate how it is working with other federal agencies, such as the Department of Homeland Security and the Department of Energy, to better coordinate responsibilities for the identification of dependencies and associated vulnerabilities with potential impact on critical infrastructure. To address this concern, the committee directs the Assistant Secretary of Defense for Homeland Defense and Americas' Security Affairs to outline DOD's approach to understanding critical infrastructure vulnerabilities and dependencies on sectors and communities outside of DOD's responsibility, which directly or indirectly support DOD operations, and submit a report to the congressional defense committees within 180 days after the date of enactment of this Act. The approach presented in the report shall focus on the identification and prioritization of DOD's mission critical functions, the location of assets providing those functions, and ongoing efforts to determine vulnerabilities (all-hazards) to those assets deemed critical to mission assurance. The report also shall address any efforts coordinated with the other departments and agencies overseeing the supporting infrastructure, and shall develop mitigation strategies for post-event remediation and replacement of such capabilities.

Rapid identification of commercial information technologies for military requirements

The budget request contained $5.2 million in PE 33169D8Z for information technology rapid acquisition, but contained no funds for a demonstration project to rapidly identify commercial information technology (IT) solutions to satisfy military requirements.

The committee is concerned with the apparent inability of the Department of Defense to incorporate innovative IT solutions in a widespread manner. The committee urges the Secretary of Defense to pursue a more aggressive and comprehensive approach to such solutions in section 841 of this Act.

Therefore, to execute the rapid identification and acquisition of commercial IT technologies, the committee recommends $15.2 million, an increase of $10.0 million, in PE 33169D8Z.

Secure free space optical communications

The budget request contained $3.5 million in PE 33191D8Z for the joint electromagnetic technology program, but contained no funds for secure miniaturized free space optical communications.

The committee is aware of the ongoing advances being achieved by leveraging several enabling commercial technologies, as well as specific defense capabilities, which were previously developed within the Advanced Sensor Applications Program. The committee recognizes that these ongoing advances are applied to the Department of Defense's requirements for a mobile, wireless communications capability to and from sensor and user assets, it will greatly increase the warfighters' ability to communicate securely and covertly over higher bandwidths with a low probability of interception.

The committee recommends $9.5 million, an increase of $6.0 million in PE 33191D8Z to complete final development of a secure, covert communications capability utilizing a low probability of interception free space optical system.

Small craft common operational picture

The budget request contained $109.5 million in PE 63826D8Z for quick reaction special projects, but contained no funds for a small craft integrated common operational picture.

The committee supports the Navy's efforts in the integration of advanced situational awareness technology into all facets of small craft operations. Demonstrations of augmented reality-based situational awareness systems have been shown to dramatically improve situational awareness and enhance vehicle control, resulting in increased operator effectiveness and improvement in mission performance.

The committee recommends an increase of $1.6 million in PE 63826D8Z to provide a flexible solution that merges both navigational and tactical capabilities to improve situational awareness aboard small craft.

Strategic Environmental Research and Development Program

The budget request contained $68.9 million in PE 63716D8Z for Strategic Environmental Research and Development Program (SERDP).

The budget request reflected an increase of $2.2 million for munitions management (MM) and an increase $1.9 million for sustainable infrastructure. While the committee understands that SERDP addresses environmental issues pertaining to training and testing sustainability and reduction of environmental liabilities, the committee is concerned that the request for MM and sustainable infrastructure increased 12 to 15 percent respectively, from fiscal year 2007 without clearly justifying the increased funding request.

The committee recommends $64.9 million, a decrease of $4.0 million, in PE 63716D8Z for SERDP.

The committee notes that this effort appears to be duplicative with other service programs that are advancing the capability of SAR CCD. The committee further notes that the budget justification materials for this program indicates that planned phase four efforts would deploy the capability on a Class III unmanned aerial vehicle (UAV). Currently, there are no efforts within the Department that support development of Class III UAVs.

The committee recommends no funds in PE 65799D8Z for SAR CCD.

Vacuum electronics

The committee notes the continued importance of vacuum electronics (VE), not only to the Department of Defense (DOD), but to applications throughout the federal government. The committee believes a healthy national industrial capacity is necessary to provide VE components for systems where solid state electronics fail to provide the required power, frequency, or electromagnetic pulse protection. Further, VE components operating in legacy systems that support the warfighter need to be maintained. In the report required by section 212 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375), the Department indicated that $4.5 million for applied research was an adequate funding level necessary to maintain a healthy VE industrial base. The committee notes the fiscal year 2008 budget request and the projected 2009 request for VE applied research were $3.4 million and $3.3 million, respectively.

The committee supports the funding levels indicated in the 2005 report and recommends that the Department provide such funding for VE in the fiscal year 2009 budget request and in future years. Accordingly, the committee understands that the Department is currently re-evaluating the appropriate defense funding levels for VE and encourages the Department to incorporate those decisions in their future year defense budget requests.

OPERATIONAL TEST AND EVALUATION, DEFENSE

OVERVIEW

The budget request contained $180.3 million for Operational Test and Evaluation, Defense.

The committee recommends $180.3 million, no change to the budget request.

Insert graphic folio 284 HR146.145

LEGISLATIVE PROVISIONS

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

SECTION 201--AUTHORIZATION OF APPROPRIATIONS

This section would establish the amounts authorized to be appropriated for research, development, test, and evaluation for the Department of Defense for fiscal year 2008

SECTION 202--AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY

This section would establish basic, research, applied research, and advanced technology development funding levels for the Department of Defense for fiscal year 2008

SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS

This section would require the Secretary of the Army to conduct a large-scale, realistic, operational test and evaluation of the Future Combat Systems (FCS) communications and sensor network prior to initiating low-rate initial production or full-rate production of FCS manned ground vehicles. This section would also require the Director of Operational Test and Evaluation to report to Congress within 120 days of the test's completion with the results of the test. The production limitation on manned ground vehicles does not apply to the non-line-of-sight cannon (NLOS-C) system.

SECTION 212--LIMITATION ON SYSTEMS DEVELOPMENT AND DEMONSTRATION OF JOINT LIGHT TACTICAL VEHICLE PROGRAM

This section would restrict the obligation of authorized funds for the Joint Light Tactical Vehicle (JLTV) program beyond its Design Readiness Review until the congressional defense committees receive a progress report on the program's compliance with section 2366a of title 10, United States Code.

The committee strongly supports the JLTV program. The committee recognizes the JLTV program is a required and ambitious attempt to replace high mobility multi-purpose wheeled vehicles (HMMWVs) across the Army, Marine Corps, Air Force and Special Operation Forces. The committee also understands that JLTV must meet full spectrum Key Performance Parameters including mobility, transportability, net-readiness, force protection, survivability, payload capacity and operational availability and notes this is what makes JLTV different than the Mine Resistant Ambush Protected (MRAP) vehicle being fielded today to meet a specific theater requirement to defeat mines and Improvised Explosive Devices. The committee understands that JLTV would provide significantly better protection, performance and payload capacity over the Up-Armored HMMWVs and MRAP without compromising mobility, protection, capability, or transportability.

It is the challenge to address the JLTV full spectrum requirements, which causes the committee concern and creates skepticism regarding the Army and Marine Corps' desire to accelerate the program. Specifically, the committee is concerned that the JLTV may enter the acquisition phase of System Development and Demonstration (SDD) with insufficient knowledge of technology maturity, requirements, and affordability. The committee notes that it may not be prudent for the Department of Defense to impose a firm fixed price contract for JLTV during the early stage of the SDD acquisition phase. The committee believes the JLTV program is too important for it to fall victim to cost growth and unnecessary schedule delays that have plagued other Department of Defense major defense acquisition programs that have entered into SDD prematurely.

The section would require the Secretary of Defense to provide a progress report on JLTV within 30 days prior to the date of the JLTV Design Readiness Review and would prohibit obligation of funding for the JLTV System Demonstration phase of SDD until the congressional defense committees review this report. This limitation is based on the assumption that the Army and Marine Corps will fully comply with section 2366a of title 10, United States Code prior to Milestone B and entering the Systems Integration phase of SDD. Further, this section would require the JLTV progress report to be structured in accordance with the certification required by section 2366a of title 10, United States Code.

SECTION 213--REQUIREMENT TO OBLIGATE FUNDS FOR DEVELOPMENT AND PROCUREMENT OF A COMPETITIVE PROPULSION SYSTEM FOR THE JOINT STRIKE FIGHTER

This section would require the Secretary of Defense to obligate sufficient annual amounts to develop and procure a competitive propulsion system for the Joint Strike Fighter, in order to conduct a competitive propulsion source selection, from funds appropriated for fiscal year 2008 or any fiscal year thereafter, pursuant to an authorization of appropriations or otherwise made available for research development, test, and evaluation and procurement for the Joint Strike Fighter program.

SECTION 214--LIMITATION ON USE OF FUNDS FOR MANUFACTURING SCIENCE AND TECHNOLOGY PROGRAM

This section would require the Director of Defense Research and Engineering to ensure that any funds obligated or expended from PE 63680D8Z are awarded using full and open competition, meet all statutory and policy guidance for the manufacturing technology program, and are awarded only upon execution of a technology transition agreement with a prospective technology user.

The committee notes that the Director plans to fund cross-cutting manufacturing initiatives with the funds appropriated to this account, in addition to the amounts appropriated for manufacturing technology within the defense components. As such, the committee feels strongly that the use of competitive procedures should be maximized in order to foster innovation and avoid duplication of effort with on-going component manufacturing technology programs. The committee believes that the Director should solicit proposals for the new manufacturing initiatives to be funded within this account and award such projects on the basis of merit, rather than transfer the funds appropriated to the defense components for obligation onto existing contractual vehicles without further competition.

SUBTITLE C--MISSILE DEFENSE PROGRAMS

This section would require the Director of the Missile Defense Agency (MDA) to report all operational test and evaluation data to the Director of Operational Test and Evaluation (DOT&E), and ensure that the DOT&E has access to all information within the Department of Defense that the DOT&E considers necessary to review in order to carry out the duties as required in this provision.

This section would allow funds to be authorized for research, development, test, and evaluation for the Missile Defense Agency (MDA) to be used for the fielding of ballistic missile defense capabilities for fiscal year 2009. This section would also require the Director of the MDA to seek operation and maintenance funds for operations and support-related activities in the fiscal year 2009 budget request, and would require the Director of the MDA to develop a plan for using procurement funds where practicable for missile defense fielding activities in the future. Furthermore, this section would require an independent study to be conducted by a federally funded research and development center to examine the future roles and missions of the Missile Defense Agency (MDA), and make recommendations with regard to the future structure of the agency.

In its annual report on the missile defense program released in March 2007, the Government Accountability Office (GAO) recommended that MDA request procurement funding rather than research, development, test, and evaluation funds to acquire and field new assets. The committee concurs with GAO's recommendation and believes that MDA needs to begin using procurement funds to acquire and field missile defense assets. However, the committee understands that it will be difficult for MDA to implement this recommendation in one year. Therefore, the committee has agreed to allow MDA a one-year extension to use research and develop funds for fielding activities through fiscal year 2009. However, this section will require the Department of Defense to request operation and maintenance funds for MDA in the fiscal year 2009 budget request, and to develop a plan for using procurement funds where practicable for missile defense fielding activities in the future. The committee understands that it will need to work with the Department and MDA to identify the applicability of these requirements to each individual element of the ballistic missile defense system. While the committee recognizes the need to retain some flexibility to allow the missile defense program to respond to changing threats, it also believes that this needs to be done in a way that increases transparency and accountability.

The committee believes this issue is a subset of the larger problem of the military services being unwilling to assume the responsibility for acquiring, fielding, and sustaining missile defense capabilities. As a result, MDA, which is fundamentally a research and development organization, has assumed primary responsibility for what are essentially service-related activities. The committee believes that the senior leadership of the Department needs to make a decision to either require the military services to acquire, field, and sustain missile defense capabilities, or transform MDA from a research and development organization into one more focused on providing combat support.

SECTION 223--LIMITATION ON USE OF FUNDS FOR REPLACING WARHEAD ON SM-3 BLOCK IIA MISSILE

This section would prohibit the Department of Defense from replacing the planned unitary warhead on the SM-3 Block IIA missile with the multiple kill vehicle until the Secretary of Defense certifies that the United States and Japan have reached agreement to replace the unitary warhead on the SM-3 Block IIA, and that this proposal will not result in a deployment delay of the missile.

This section would extend the requirement to fiscal year 2010 for the Comptroller General to provide an assessment of the extent to which the Missile Defense Agency achieved the goals established for each ballistic missile defense program of the Department of Defense.

SECTION 225--INDEPENDENT STUDY ON DEPLOYING MISSILE DEFENSE SYSTEM IN EUROPE

This section would require an independent study to be conducted by a federally funded research and development center to examine the political, technical, operational, force structure, and budgetary aspects of deploying a long-range missile defense system in Europe. This study should examine other technical options for providing missile defense protection for Europe. These options should include an examination of existing missile defense systems such as Aegis Ballistic Missile Defense system and Terminal High-Altitude Area Defense system, as well as explore new concepts such as a mobile launch platform.

SECTION 226--SENSE OF CONGRESS CONCERNING FULL SUPPORT FOR DEVELOPMENT AND FIELDING OF A LAYERED BALLISTIC MISSILE DEFENSE

This section would express the sense of Congress that it fully supports efforts to develop and deploy a layered ballistic missile defense system. It also notes that it is the policy of the United States to accord priority within the missile defense program towards nearer-term missile defense systems.

SUBTITLE D--OTHER MATTERS

SECTION 231--RESPONSIBILITY FOR HUMAN SYSTEMS INTEGRATION ACTIVITIES

This section would require the Secretary of Defense to designate, within 60 days after date of enactment of this Act, a senior Department of Defense (DOD) official to develop, coordinate, and manage human systems integration activities throughout the Department.

This section would require the Secretary to supervise the planning, management and coordination of such activities after designating the senior official. The responsibilities of the Secretary's designee shall include the development of a DOD Instruction and a DOD Directive, if necessary.

This section would further require the senior official to identify and recommend resource requirements of these activities, as appropriate.

SECTION 232--EXPANSION OF AUTHORITY FOR ENCOURAGEMENT OF TECHNOLOGY TRANSFER

This section would amend section 2514 of title 10, United States Code, to allow the Department of Defense laboratories and research and development centers to provide facilities, services, and equipment to private industry in order to promote accelerated development of critical technologies and technology transition initiatives that support the Department. Section 2514 of title 10, United States Code, currently authorizes the Secretary of Defense to transfer technology between laboratories and research and development centers to other federal agencies and non-federal entities in order to improve the use and availability of dual-use technologies for commercial utilization.

SECTION 233--ARMY VENTURE CAPITAL FUND DEMONSTRATION

This section would provide new authority to the Army venture capital fund demonstration to invest in companies with renewable energy technologies. Further, this section would authorize an additional $10.0 million within Research, Development, Test and Evaluation, Army, to be available to the Army venture capital fund for investment in renewable energy technologies.

The committee understands that under the existing authorities provided for the Army venture capital fund demonstration by section 8150 of the Department of Defense and Emergency Supplemental Appropriations for Recovery from and Response to Terrorist Attacks on the United States Act, 2002 (Public Law 107-117) as extended and revised in section 8105 of the Department of Defense Appropriations Act for Fiscal Year 2003 (Public Law 107-248), the venture capital fund demonstration operates with the availability of unobligated balances remaining in expiring Research, Development, Test and Evaluation, Army, accounts. The new funding and expanded authority that would be provided by this section is not intended to alter the existing funding mechanism or existing authority.

The committee understands that the Army venture capital fund demonstration, working in concert with the Department of the Army, has invested in companies with near-term technology solutions in the area of portable power and energy for the individual soldier that have resulted in technology improvements and cost savings to the Army. The committee believes this business model has the potential to help the Army make further progress towards meeting the Department of Defense goal of using 25 percent renewable energy by fiscal year 2025.

This section would require the Secretary of Defense to appoint the necessary Department of Defense representative to conduct independent, objective, transparent ballistic and non-ballistic impact testing of product representatives of all qualified combat helmet pad suspension systems in all combat helmets currently fielded to armed forces personnel. This section would require the Secretary of Defense to report back to the congressional defense committees the results of these tests by September 30, 2008. The committee expects the tests would be conducted using a certified and qualified independent laboratory outside the government system. In addition, the tests would also include an operational user assessment of the qualified pad suspension systems that would consider key performance parameters of form, fit, function, cost, schedule, performance, and vendor production capacity. In addition, the committee also expects lessons learned from Operation Iraqi Freedom and Operation Enduring Freedom, as well as feedback from soldiers, sailors, airmen, and marines be considered as part of this test and evaluation and operational assessment. The committee recognizes that pad suspension systems provide needed force protection from blunt trauma and non-ballistic impacts.

SECTION 235--REPORT ON IMPLEMENTATION OF MANUFACTURING TECHNOLOGY PROGRAM

This section would require the Secretary of Defense to submit a report by March 1, 2008, to the congressional defense committees on the implementation of technologies or processes developed under the Manufacturing Technology Program required by section 2521 of title 10, United States Code. This report would include the following elements: the Manufacturing Technology project under which the technology was developed, the federal and non-federal performing activities, the project duration, the total government funding required to mature and implement the technology, the total amount of industry cost share, and the total cost avoidance or cost savings associated with technology implementation. This report would include technologies implemented in manufacturing processes for military and commercial applications and would be limited to manufacturing technologies funded by the program since 2002.

SECTION 236--ASSESSMENT OF SUFFICIENT TEST AND EVALUATION PERSONNEL

This section would require the Director, Operational Test and Evaluation, to assess the sufficiency of the Director's professional staffing levels. The Office of the Director, Operational Test and Evaluation is currently required by section 139, title 10, United States Code, to maintain sufficient staff to perform all duties assigned to the Director. This section would require the Director to include the findings of such an assessment in the next operational test and evaluation activities annual report to be submitted to the congressional defense committees not later than 10 days after the transmission of the budget for the next fiscal year under section 1105 of title 31, United States Code.

SECTION 237--REPEAL OF REQUIREMENT FOR SEPARATE REPORTS ON TECHNOLOGY AREA REVIEW AND ASSESSMENT SUMMARIES

This section would repeal section 253(c) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163), which currently requires the Secretary of Defense to submit a report to the congressional defense committees on each Technical Area Review and Assessment (TARA) conducted during that year. The committee notes that the Department is restructuring its science and technology planning process that no longer directly supports the traditional TARA reports. The committee expects the Secretary to readily provide this data to the congressional defense committees upon such a request.

TITLE III--OPERATION AND MAINTENANCE

OVERVIEW

The President's budget request contains approximately $235.3 billion in operation and maintenance funds to ensure the U.S. military can train, deploy, and sustain U.S. forces in operations at home and throughout the world. Although this request appears to increase spending by $2.7 billion over levels authorized and appropriated for fiscal year 2007, it fails to account for $5.4 billion in additional expenses the Department of Defense expects due to inflation and rising fuel costs. In effect, the President's budget request for fiscal year 2008 represents a $2.7 billion reduction when compared with fiscal year 2007 readiness expenditures.

It is critical for the United States to provide the resources necessary to properly train and equip its men and women in uniform, to care for service members and their families, and to prepare the military to fight today's battles while deterring and defending against future threats. The committee believes the proposed funding level cannot fully address the Department of Defense's operation and maintenance needs while the military is engaged in Operation Iraqi Freedom (OIF) and Operation Enduring Freedom (OEF).

Because readiness is the foundation of U.S. military policy, the committee is gravely concerned with the declining readiness of U.S. ground and air forces. After five and one-half years at war, the cumulative effort of fighting in multiple locations over a sustained period has negatively affected the military's readiness posture and impacted the services' ability to respond to emergent requirements. Military leaders face significant and sometimes insurmountable challenges as they seek to fulfill today's equipment and training needs.

Equipment readiness, particularly for Army and Marine Corps ground forces, has been severely impacted by current operations in Iraq and Afghanistan. Army readiness has dropped to levels not seen since the 1970s. Some units deployed to locations other than Iraq and Afghanistan are operating without complete sets of equipment or adequate resources to train or execute their full-spectrum missions. The recent extension of Army deployments from 12 months to 15 months will be an additional burden on an already overstretched Army and will place further stress on unit readiness.

Today, every non-deployed Army and National Guard combat brigade would face significant challenges completing their assigned missions if they were called upon to fight. Despite more than $35.0 billion in supplemental Congressional appropriations for the ongoing reset of the Army's equipment since 2001, deficiencies in equipment readiness persist and the readiness levels of the Army's non-deployed forces continue to fall to unprecedented lows. The Government Accountability Office has reported that the Army's current reset plan does not focus on improving the readiness of units preparing to enter the deployment window, nor does it mitigate the operational risk associated with reduced equipment readiness for units in the strategic base. This risk is evident in the declining readiness posture of ground units not currently deployed, in depleted prepositioned war stocks, and in National Guard units deprived of equipment needed for training.

While the Navy shows some level of recovery in aviation readiness in fiscal year 2008, Air Force readiness continues to decline due to a high tempo of operations. Flying more than 200 sorties per day in the Central Command area of responsibility, the Air Force's high utilization of a smaller, older air fleet has resulted in readiness rates that are 17 percent below unit operational readiness rates prior to September 11, 2001, and are below the all-time low levels observed last year. Despite a budget increase of $3.2 billion, or 11.7 percent, over the fiscal year 2007 appropriated level, the readiness budget request for the Air Force reflects a 10 percent reduction in flying hours and funds only 74 percent of the requirement for depot-purchased equipment maintenance. Air Force contractor logistics support is funded at 75 percent of the required level, and the budget also accepts reductions in spare parts and engine repairs.

The committee believes that the Department and service secretaries must increase their efforts to anticipate, seek resources for, and manage the reset of damaged and destroyed equipment. These efforts must focus on using all authorities to maximize industrial capacity and manage assets. The committee urges the Department to place reset at a higher priority than transformation and modernization and to ensure that reset is providing an output that directly addresses readiness shortfalls. Long-term sustained action will be needed to truly address this crisis. Additional steps are taken toward this effort in Title XVII of this Act and through additional funding in Title XV.

In addition to the equipment shortfalls, the committee is also concerned about degradation in training due to high operations tempo and funding reductions. The committee has noted that ground force training is focused solely on current operations and that full-spectrum combat training proficiency has declined precipitously. The high tempo of OIF and OEF has also reduced the time available for units to train between deployments. Constraints on time and equipment have forced commanders to seek efficiencies in completing required pre-deployment training. Rotations at the National Training Center were eliminated for the last two brigade combat teams deployed to Iraq, with the units conducting home-station training in the states of Washington and Georgia, instead of in the desert at Fort Irwin, California.

The focus on operations has also reduced the funding available for training. With the exception of naval aviation forces, all the services are currently funded well below the levels required to conduct the minimal training necessary to maintain adequate military readiness. The following examples illustrate the shortfalls in the fiscal year 2008 budget request:

(1) The Army funds 582 tank miles a year, versus a combined arms training strategy requirement of 846 miles;

(3) The Navy's non-deployed forces are reduced to 22 ship steaming days per quarter, relying upon simulation exercises and improvements in training methods to ensure readiness;

(4) The Marine Corps funds 88 percent of the combat ready days-equipment and training requirement; and

(5) The Air Force funds 90 percent of the flying hour training requirement while mission capable rates are scheduled to fall below last year's nine-year low of 75 percent.

The committee is concerned that training shortfalls are limiting the full-spectrum capability of our forces. Immediate action is required to stop the loss of critical combat skills. The committee has included $250.0 million for the Secretary of Defense to address training shortfalls throughout the services. These funds, which have been placed under the Army's Operating Forces budget line, should be used by the Secretary of Defense to address training readiness needs of units throughout the services on an urgent, emergent basis and to increase the overall training readiness posture of the services. The committee expects that the Department's future requests for training funds will reflect the services' actual training requirements. The Department must fully fund training and ensure every effort is made to increase the opportunities for unit and individual skill training.

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ITEMS OF SPECIAL INTEREST

BUDGET REQUEST ADJUSTMENTS

The committee recommends the following adjustments to the fiscal year 2008 amended budget request:

AIR FORCE DEPOT PURCHASED EQUIPMENT MAINTENANCE

The budget request contained $2.7 billion for depot purchased equipment maintenance (DPEM) for active Air Force aircraft, engines, missiles, software, other major end items and storage for Air Force weapon systems and subsystems. Budget justification materials showed maintenance deferrals for 50 aircraft and 91 engines. The committee recommends an increase of $62.0 million to help eliminate aircraft and engine deferrals across various platforms.

ARMY PREPOSITIONED STOCKS

The budget contained a request for $156.3 million for the Army Prepositioned stocks. These funds are intended to support the storage and maintenance of the Army's prepositioned stocks of material. This material is stored in locations around the world and on afloat ships to facilitate rapid deployment in support of emergent contingencies. The committee notes that in fiscal year 2007, a significant portion of the material in the prepositioned stocks was drawn from these stocks to support Army requirements.

The fiscal year 2008 request for maintaining the prepositioned stocks is $89.8 million higher than the fiscal year 2007 level. The committee is pleased that the Army has responded to concerns that more emphasis is needed on maintaining the prepositioned materiel. The committee, however, can not support all of the fiscal year 2008 requested increase as it is based on maintaining prepositioned material that has been issued and is no longer in the prepositioned stocks.

Therefore, the committee recommends $86.3 million, a decrease of $70.0 million, for the Army Prepositioned Stocks.

B-52

The committee understands that the 2006 Quadrennial Defense Review directed the Air Force to reduce the B-52 force to 56 aircraft and use the savings to fully modernize the remaining B-52s, B-1s, and B-2s to support global strike operations. The committee realizes that the current B-52 combat coded force structure of 44 is insufficient to meet combatant commander requirements for conventional long-range strike, if the need should arise to conduct near simultaneous operations in two major regional conflicts. The committee is deeply concerned that retirement of any B-52 aircraft prior to a replacement long-range strike aircraft reaching initial operational capability status is premature.

The committee understands that the Air Force plans to modernize and upgrade only 56 of the total 76 B-52 aircraft in the inventory. The committee strongly opposes a strategy to reduce capability in present day conventional long-range strike capability without a replacement platform that is not projected to achieve initial operational capability until well into the future.

The committee recommends an increase of $63.0 million for readiness of the entire B-52 bomber fleet. Additional increases have been made in Title I and section 401 of this Act, amounting to $20.0 million and $5.3 million, respectively.

CHEYENNE MOUNTAIN

The budget request contained $9.2 million to support the relocation of assets from Cheyenne Mountain to Peterson Air Force Base.

The committee is concerned about US Northern Command (USNORTHCOM) plans to move the North American Aerospace Defense (NORAD) command center and related functions from Cheyenne Mountain to Peterson Air Force Base and create a single NORAD-USNORTHCOM Command Center. The committee understands that USNORTHCOM has identified costs of about $42.0 million to integrate the command centers, but the full costs will not be known until the completion of ongoing security-related studies. The committee is also aware that USNORTHCOM expects the integrated center will improve unity of effort and create operational efficiencies. However, the Government Accountability Office (GAO) informed the committee that USNORTHCOM has not done an analysis that compares the estimated cost to the anticipated benefits.

In section 356 of Title III, the committee directs the Secretary of Defense to submit a report to Congress on the relocation of NORAD and directs the Secretary of Defense to wait for 180 days until relocation activities may commence. Furthermore, the committee directs the Comptroller General to prepare a report on their assessment of the proposed NORAD relocation plans within 60 days of receiving the Secretary of Defense report.

The committee recommends a decrease of $9.2 million from the Air Force Cheyenne Relocation project to ensure sufficient time is available for the committee to review the recommendation.

CORPUS CHRISTI MILITARY SEAPORT UPGRADES

The committee recommends an increase of $4.0 million to the Department of Defense Office of Economic Adjustment for the Port of Corpus Christi for military seaport infrastructure upgrades. Furthermore, the committee recommends an increase of $1.0 million to the Department of Defense Office of Economic Adjustment for the Department of Defense certified, Local Reuse Authority that is representative of the Coastal Bend, Corpus Christi, Texas area adversely affected by BRAC 2005.

EXPEDITIONARY FIGHTING VEHICLE PROGRAM OFFICE SUPPORT

The budget request contained $26.0 million in Operation and Maintenance funding for program office support of the Marine Corps expeditionary fighting vehicle (EFV).

In light of the committee's reduction of the EFV developmental program in Title II due to suspension of the research and development program and delays in system development, the committee recommends a decrease of $20.0 million in Operation and Maintenance funding for the EFV.

MAINTAIN 36TH RESCUE FLIGHT, FAIRCHILD AFB

The budget request contained no funds for the 36th Rescue Flight (RQF) assigned to Fairchild Air Force Base in Spokane, Washington.

The committee strongly supports the 36th RQF and is concerned that by not providing funding in the budget request the Department intends to deactivate this unit, without providing certifying information to Congress that equivalent search and rescue capabilities are available for the region and in support of the National Response Plan.

The committee recommends $4.0 million to maintain this critical function.

NAVY AIRCRAFT DEPOT MAINTENANCE

The budget request contained $1.0 billion for depot maintenance for Navy active aircraft and $151.0 million for reserve aircraft depot maintenance. The goal of the airframe rework program is to provide enough airframes to meet 90 percent of the goal for primary authorized aircraft (PAA) for non-deployed squadrons. The engine rework program objective is to fill 90 percent of authorized spare requirements for each engine type/model/series by returning engines/modules to a Ready-for-Issue (RFI) status. The budget request is sufficient to meet 79 and 85 percent of those goals, respectively, for active aircraft and to meet 74 percent of the PAA goal and 88 percent of the engine RFI spares goal for reserve aircraft.

The committee recommends an increase of $91.6 million to help reach the 90 percent goal for depot maintenance of Navy active and reserve aircraft airframes and engine spares.

READINESS AND ENVIRONMENTAL PROTECTION INITIATIVE

The budget request contained $30.0 million for the Readiness and Environmental Protection Initiative (REPI).

The committee expects the secretaries of the military departments to use the authority and funding available through the REPI program to enter into agreements with willing entities to prevent or limit the use of property that would impede the mission of that military installation. The committee also supports the efforts to provide encroachment buffers at Whiteman Air Force Base (AFB).

The committee recommends $50.0 million for the Readiness and Environmental Protection Initiative, an increase of $20.0 million. Included in this increase is $3.0 million to support encroachment buffers at Whiteman AFB. The committee also encourages the Department of Defense to explore using this authority at McChord AFB.

RESERVE FORCES SHIP MAINTENANCE

The budget request contained $42.0 million for Department of the Navy reserve forces ship maintenance, 78 percent of the projected maintenance requirement.

The committee recommends an increase of $12.0 million to buy down the projected deferred maintenance for fiscal year 2008.

ENVIRONMENTAL ISSUES

MARINE MAMMAL PROTECTION ACT

The committee is concerned that the Deputy Secretary of Defense authorized a two-year National Defense Exemption from the Marine Mammal Protection Act (MMPA) section 1361-1421h of title 16, United States Code, on January 23, 2007. The committee is aware that this exemption applies to military readiness activities involving mid-frequency active sonar or explosive sonobuoys either during major training exercises, or within established ranges and operating areas. The committee recognizes that this exemption is intended to span the duration of time during which the Department of the Navy is working to come into full compliance with the MMPA. Until such time as the Navy achieves full compliance with the MMPA, the committee directs the Secretary of the Navy to document those specific activities undertaken under the authority of the National Defense Exemption. Further, the committee directs the Secretary of the Navy to submit a report on those activities to the Senate Committee on Armed Services and the House Committee on Armed Services by February 1, 2008. In addition, the committee encourages the Department to submit a report by February 1 of each subsequent year for as long as the exemption is in effect. The report shall include an assessment of the increase in military readiness and the estimated number and species of marine mammals injured and killed as a result of those activities undertaken under the authority of the exemption and an estimate of the population level effect, if any, on these species. Additionally, the report should provide an update on activities undertaken by the Navy to achieve full compliance with the MMPA.

STUDY ON MILITARY READINESS AND EXEMPTIONS TO ENVIRONMENTAL LAWS

The committee is aware of the often competing requirements for maintaining military readiness and protecting the environment. While the committee considers military readiness to be of utmost importance, the committee also holds the Department of Defense responsible for sound environmental management. The committee understands that for a number of years the Department has been granted exemptions for certain provisions of the Clean Air Act, section 7401 of title 42, United States Code; Clean Water Act, section 1251 of title 33, United States Code; Endangered Species Act section 1531 of title 16, United States Code; Noise Control Act, section 4901 of title 42, United States Code; Solid Waste Disposal Act, section 6901 of title 42, United States Code; Safe Drinking Water Act, section 300f of title 42, United States Code; Migratory Bird Treaty Act, section 701 of title 16, United States Code; Marine Mammal Protection Act, section 1361 of title 16, United States Code; and the Comprehensive Environmental Response, Compensation, and Liability Act, section 9601 of title 42, United States Code. The committee would like to ensure that the exemptions provided under these acts have resulted in a measured increase in readiness and would like to broadly understand resulting impacts imposed on the environment.

The committee directs the Comptroller General of the United States to conduct a study on the extent to which the current environmental laws, regulations and exemptions are affecting the Department's training activities, readiness, and the environment. The study shall include the following: a determination of the full set of exemptions available to the Department; a review of how the exemptions have been used; an assessment of what incremental benefits to military readiness and impacts to the environment have resulted; and the extent to which the Department has systematically documented the effects of exemptions from environmental laws and regulations on training, readiness, and the environment. The report shall be submitted to the Senate Committee on Armed Services and the House Committee on Armed Services by February 1, 2008.

OTHER MATTERS

DEPOT MAINTENANCE WORKLOAD CARRYOVER

The committee is aware that the heavy workload requirements generated by Operation Iraqi Freedom (OIF) and Operation Enduring Freedom (OEF) are creating carryover issues for the services' depots, particularly Army and Marine Corps depots. Carryover is that portion of the maintenance program not completed during the year of funding obligation and carried into the next fiscal year. Under Department of Defense policy, the allowable amount of carryover is based on the outlay rate of the customers' appropriations financing the work. According to the Government Accountability Office, carryover is greatly affected by orders accepted by working capital fund activities late in the fiscal year that generally cannot be completed by fiscal year end, and in some cases cannot even be started prior to the end of the fiscal year. As a result, almost all orders accepted late in the fiscal year increase the amount of carryover. Due to the already-heavy OIF and OEF-related workload, the carryover problem for the depots is exacerbated when program offices, facing fiscal year-end spending challenges, load the depots with even more work.

Until OIF and OEF and the ongoing reset of military equipment cease to generate exceptionally high levels of workload for the depots, the committee strongly recommends that the Department manage depot workloads so that the established carryover rules do not become a detriment to the organic depots.

FACILITY SUSTAINMENT, RESTORATION AND MODERNIZATION

The committee is encouraged that the Department of Defense (DOD) has generally retained the fiscal discipline to avoid migrating funding from the sustainment, restoration and modernization accounts. This discipline will ensure that budgeted funding is available to support required maintenance of defense infrastructure. However, the committee remains concerned that the Department continues to underestimate the long-term cost implications related to underfunding the sustainment accounts and is disappointed in the amount for this account in fiscal year 2008 budget request.

Since 2001, the Department has maintained a goal of fully funding the sustainment account and has implemented a sustainment model that measures the facilities requirements across the Department. This fiscal goal was established to ensure optimal sustainment funding was available that maximized the long-term investment. Unfortunately, the fiscal year 2008 budget contains the lowest level of funding since implementation of the model. The most egregious activities of underfunding the sustainment accounts include the Defense Health Program (funded at 87 percent of the stated requirement), the Department of the Navy (funded at 83 percent of the stated requirement) and the Department of Defense Education Activity (funded at 65 percent of the stated requirement). The committee is particularly concerned with the sustainment funding provided to medical activities and the resultant condition of facilities at these critical service nodes. If funding were provided as recommended in the budget request, the committee expects accelerated deterioration of DOD's infrastructure.

Accordingly, the committee recommends an increase of $50.0 million for the Defense Health Program, sustainment, restoration and modernization account to fully fund sustainment in this critical area and most particularly at the Walter Reed Army Medical Center. Also, the committee encourages the Department to determine fiscal sustainment, restoration and modernization fiscal controls throughout the Department to avoid the wide disparities amongst the different components. Finally, the committee expects the Department to financially support their stated goals to fully fund sustainment in all accounts in the budget submission for fiscal year 2009.

GROUND COMBAT SKILLS TRAINING

The committee is aware that the Navy and Air Force are planning to introduce new courses in combat first aid and heavy weapons training, skills more commonly associated with ground forces. The Navy is planning an eight-week expeditionary combat skills course for all sailors assigned to the Navy Expeditionary Combat Command (NECC). The course would focus on four aspects of ground warfare: moving, shooting, communicating and administering first aid. The committee understands that the Navy is looking at possible east coast and west coast locations for the course, as well as at Army and Marine Corps bases. The Air Force is already conducting combat skills training at Camp Andreson-Peters, Texas, and will be starting the Common Battlefield Airman Training Course as a five-day class with plans to expand it by 2010 to a 20-day class that would include physical fitness training, self-defense, advanced weapons training, combat medical skills, integrated base defense classes, land navigation, and tactical field operations. While initially the Air Force will use an Army training site, the committee understands that the Air Force is considering three candidate sites for a permanent school.

The committee is very concerned about the creep of non-traditional missions, such as ground combat skills, into the Navy and Air Force and the resulting potential weakening of those services' core competency skills. This movement of the Navy and Air Force into non-traditional roles and missions is evidenced in the increased use of `in lieu of' sailors and airmen to augment Army and Marine Corps ground combat forces in Operation Enduring Freedom and Operation Iraqi Freedom. Sailors and airmen are increasingly being called upon to help drive trucks, provide security at deployed bases, and protect convoys. Jointness dictates that the services operate within their core competencies and seek the expertise of the service whose skills lie in a particular competency. While training of sailors and airmen in ground combat skills may be a necessity given current combat operations, the committee believes it should be treated as an exception rather than a reason to establish permanent training.

The committee is hopeful that efforts by the Army and Marine Corps to increase their end strength permanently will help alleviate the pressure to use Navy and Air Force personnel in these ways. In Title IX of this Act, the committee directs action designed to review comprehensively review current Department of Defense roles and missions and the core capabilities of the respective military services.

The committee strongly encourages the Navy and the Air Force to use existing ground combat skills training courses to avoid duplication of training already offered within the Marine Corps and Army.

IMPACT OF CONTINGENCY OPERATIONS ON THE ARMY WORKING CAPITAL FUND

The committee is concerned about the financial impact of ongoing military operations on the Army Working Capital Fund. Prior to the start of Operation Iraqi Freedom (OIF), the Army Working Capital Fund in fiscal year 2002 showed $2.5 billion in orders with vendors for the purchase of inventory items. Because of increased customer demands due to the rapid deployment of large operating forces and high military operational tempo, the Army's fiscal year 2008 budget request shows this amount has grown substantially. Since fiscal year 2004, the Army has sustained over $7.0 billion annually in orders with vendors. The Army estimates the level of undelivered orders will reach $7.5 billion in fiscal year 2007, almost three times the pre-war level.

Following the end of OIF, the Department of Army will retain orders with vendors for inventory items purchased to sustain the war effort, but whose peacetime need is significantly reduced. Upon delivery of the ordered inventory items, the Army Working Capital Fund will need sufficient funds to pay for these items. The fiscal year 2008 budget request contained no funds for repayment of the $2.0 billion that was transferred from the Army Working Capital during fiscal years 2004 and 2005 to the Operation and Maintenance accounts to support war-related requirements. But, the Army, in its budget justification material, still projects that `at some point, all or part of the $2.0 billion transferred from the fund must be repaid so that the fund has sufficient cash to pay for material on order in the Supply Management activity group.' The committee is very concerned about this growing financial requirement and the implications for future budget requests, the Department of Defense budget topline, and potential violation of the Antideficiency Act. Therefore, the committee strongly encourages the Department of Defense and the Department of the Army to develop a plan to repay the Army Working Capital Fund, ensuring its financial viability and limiting future reprogramming requests to only those with established repayment plans.

LIFECYCLE SUSTAINMENT STRATEGIC PLANS

The committee believes that core logistics and source-of-repair decisions are critical elements of a program's acquisition strategy and must be made early in the acquisition process to ensure adequate and appropriate organic technical repair and support capability. Furthermore, the committee believes that establishing a life-cycle strategic plan and a life-cycle program baseline early in the acquisition cycle could reduce life-cycle costs and enable strategic planning for adequate and appropriate workload in organic repair facilities. Such a plan would broadly examine key readiness drivers such as materiel availability, materiel reliability, total costs of ownership, and repair cycle times, and would facilitate decision-making and visibility on readiness enablers during program acquisition. The committee applauds the Air Force's December 2006 policy memorandum requiring a strategic source-of-repair determination at a point in the acquisition cycle to allow an earlier assessment of the sustainment concept. Accordingly, the committee encourages the Secretary of Defense to require development of a life-cycle program baseline and life-cycle strategic plan prior to system development and demonstration.

MILITARY TIRE PRIVATIZATION

The committee is aware that the Defense Logistics Agency recently let two contracts for supply and distribution of military tires for aviation and ground applications. The committee notes that these contracts were awarded under a program recommended in the 2005 Defense Base Closure and Realignment Report which was required by the Defense Base Closure and Realignment Act of 1990 (Public Law 100-510), as amended. The committee expects that these contracts will produce significant savings in the acquisition, storage, and distribution of military tires. The committee is concerned, however, that the new program structure could reduce the incentive for the incumbent military tire provider to maximize competition in the production of military tires. The committee expects the Defense Logistics Agency, in managing contracts for supply and distribution of military tires, to ensure, to the maximum extent practicable, that all qualified mobilization base tire manufacturers have a fair and equal opportunity to compete.

PRIME VENDOR CONTRACTS

Prime Vendor (PV) contracts allow military customers to buy commercial products directly from a pre-established commercial distributor. The Government Accountability Office (GAO) has supported the PV concept as a method of cost savings through reduced inventories. In the 1990s, Congress encouraged the Defense Logistics Agency (DLA) to use the PV program to eliminate warehouses stocked with millions of dollars of material. Although there have been problems, particularly concerning allegations of overpricing of certain items in the food service program which the committee investigated in 2005, the committee is encouraged by actions taken by DLA to improve its management oversight and internal controls over the program. In recent reports, the GAO highlighted deficiencies related to management and oversight of the program, which DLA is attempting to address, but GAO noted that not all corrective actions are complete. DLA adjusted its acquisition strategy for commodities not suitable for the PV concept and introduced specific requirements to ensure price reasonableness determinations across the program. In addition, DLA senior leadership demonstrated their commitment to the PV program by implementing an annual certified training program and establishing a senior civilian acquisition position to oversee the PV program. The committee encourages the DLA to continue its efforts to improve efficiencies and increase optimum value in the services and supplies needed to satisfy the requirements of the military departments.

PROGRAM FOR TRACKING HIGH-ALTITUDE AVIATION TRAINING

The committee believes that high-altitude aviation training can reduce helicopter accidents by ensuring that crews are properly trained and current in the procedures for operating in high elevations and mountainous terrain. The committee is aware that pilots who complete high altitude aviation training are not formally tracked by the Army. Therefore, the committee strongly urges the Secretary of the Army to implement a program for tracking those pilots that have attended a school with an established program of instruction for high altitude aviation operations training. The program should, if practical, utilize an existing system that permits the query of pilot flight experience and training and shall also annotate location and date of training for any high altitude aviation training.

The committee believes a key to attracting, developing and retaining the high-caliber technical talent essential for the Navy's future is to provide career growth and leadership opportunities at naval warfare centers. Senior Scientific Technical Manager (SSTM) positions are well suited to provide the needed career growth potential. However, the number of these positions is limited to 40 across the naval warfare centers. In order to enable the transformation of the Naval Sea Systems Command (NAVSEA) into a competency-aligned organization that can attract and retain the talent needed to develop and support Navy programs, the committee urges the Department of the Navy to revise current regulations and allow up to one percent of the engineering and scientific positions at NAVSEA warfare centers to be designated as SSTM positions.

LEGISLATIVE PROVISIONS

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

SECTION 301--OPERATION AND MAINTENANCE FUNDING

This section would authorize $142.5 billion in operation and maintenance funding for the military departments and defense-wide activities.

SECTION 302--WORKING CAPITAL FUNDS

This section would authorize $2.9 billion for working capital funds of the Department of Defense and the National Defense Sealift Fund.

SUBTITLE B--ENVIRONMENTAL PROVISIONS

This section would authorize the Secretary of Defense to transfer not more than $91,588.51 to the Moses Lake Wellfield Superfund Site 10-6J Special Account. This transfer is to reimburse the Environmental Protection Agency for its costs in overseeing a remedial investigation/feasibility study performed by the Department of the Army under the Defense Environmental Restoration Program at the former Larson Air Force Base, Moses Lake Superfund Site, Moses Lake, Washington.

This section would authorize the Secretary of Defense to transfer not more than $186,625.38 to the Hazardous Substance Superfund to reimburse the Environmental Protection Agency for costs incurred pursuant to U.S. EPA Docket Number CERCLA-10-2003-0114.

This section would authorize the Secretary of the Navy to transfer not more than $40,000.00 to the Hazardous Substance Superfund to reimburse the Environmental Protection Agency for costs incurred pursuant to U.S. EPA Docket Number CERCLA-10-2005-0023.

SUBTITLE C--WORKPLACE AND DEPOT ISSUES

SECTION 321--INCREASE IN THRESHOLD AMOUNT FOR CONTRACTS FOR PROCUREMENT OF CAPITAL ASSETS IN ADVANCE OF AVAILABILITY OF WORKING-CAPITAL FUNDS FOR THE PROCUREMENT

This section would amend section 2208 of title 10, United States Code to increase the authority for the acquisition of capital assets through the Working Capital Fund from $0.1 million to $0.3 million.

The original intent of capital asset authority for the working capital fund was to decrease procurement lead times, implement steady workload requirements at maintenance depots, and improve supplier workload coordination with the private sector. The committee expects that by raising this authority, maintenance depots would be able to acquire components in advance of the availability of funds and thereby optimize depot capacity and flexibility. Consequently, this increased authority would enable the military services to accelerate technology refreshment of critical warfighter equipment.

Accordingly, the committee is concerned that the Financial Management Regulation (FMR) limits the opportunity to provide technology refreshment and insertion. The committee encourages the Secretary of Defense to consider potential changes to the FMR that would allow for continuous technology refreshment and insertion of components or systems that would significantly improve the performance envelope of the end item.

This section would amend section 2208 of title 10, United States Code, by adding a new paragraph at the end that gives limited authorization to the Department to use Defense Working Capital Funds to make limited product improvements for weapon systems, major end items, and components.

The committee is concerned that the Department of Defense Centers of Industrial and Technical Excellence (CITEs) will not be able to incorporate commercial technologies into existing components, assemblies, spares and repair parts, and other items of equipment based on the lessons learned in the wars in Afghanistan and Iraq. Most of the weapon system platforms used in combat today have exceeded the projected average age for use. The ability to use technology insertion and refreshment during depot maintenance availabilities to change the performance capability of the end item to mitigate obsolescence and improve performance is critical to the reset and recapitalization of our warfighting platforms.

SECTION 323--AUTHORIZATION OF USE OF WORKING-CAPITAL FUNDS FOR ACQUISITION OF CERTAIN ITEMS

This section would amend section 2208 of title 10, United States Code, by adding a new paragraph at the end that would establish dollar thresholds for the Defense Working Capital Funds to acquire items that support maintenance and technology refreshment and ensure the viability of core logistics capabilities.

The committee is concerned that the Department of Defense Centers of Industrial and Technical Excellence (CITEs) will not be able to insert technology to improve reliability and maintainability, extend the useful life, enhance safety, lower maintenance costs, provide performance enhancement or expand the performance capability of weapons system platforms by the acquisition of critical new components, assemblies, spares and repair parts, and other items of equipment during depot maintenance availabilities. This provision would provide limited flexibility for the CITEs to replace obsolete components with newer technology replacements to perform weapon system modifications, improvement and service-life extensions during maintenance availabilities.

This section would exclude health care and retirement costs from the cost comparison process used for public-private competitions conducted pursuant to section 2461 of title 10, United States Code. This exclusion would apply if the contractor's contribution towards its employees' benefits is less than what the Congress requires the Department of Defense (DOD) to contribute for the benefits of federal civilian employees. This section, however, would not require contractors to provide the same level of health and retirement benefits as DOD. Moreover, contractors would receive full credit for using alternatives to traditional health care and defined benefit pension plans, including health savings accounts, 401(k) plans, individual savings accounts, or profit sharing plans.

This section also would strike 2467 of title 10, United States Code. The requirement at paragraph (b) for monthly consultations with employees affected by public-private competitions would be added to section 2461 of title 10, United States Code.

SECTION 325--PUBLIC PRIVATE COMPETITION AT END OF PERFORMANCE SPECIFIED IN PERFORMANCE AGREEMENT NOT REQUIRED

This section would allow Department of Defense managers to determine whether to recompete (after five years) work being performed by federal employees that was won by the employees under a public-private competition process, pursuant to Office of Management and Budget Circular A-76 or section 2461 of title 10, United States Code.

SECTION 326--GUIDELINES ON INSOURCING NEW AND CONTRACTED OUT FUNCTIONS

This section would require the Under Secretary of Defense for Personnel and Readiness to develop and implement guidance to provide managers within the Department of Defense (DOD) and the military services with the flexibility to consider using federal civilian employees for work that is new or currently being performed by contractors in certain circumstances. The guidance must be developed within 60 days after enactment and no public-private competition studies could be conducted until such guidance is issued. The section also would require the Department to establish an inventory of the functions being performed by contractors. Within 90 days after date of enactment, the DOD Inspector General would be required to provide an assessment to the congressional defense committees of the implementation of the guidance and the establishment of the inventory.

This section would amend section 2462 of title 10, United States Code, to add additional elements to the annual report on the results of public-private competitions conducted by the Department of Defense.

SECTION 328--RESTRICTION ON OFFICE OF MANAGEMENT AND BUDGET INFLUENCE OVER DEPARTMENT OF DEFENSE PUBLIC-PRIVATE COMPETITIONS

This section would prohibit the Office of Management and Budget (OMB) from requiring the Department of Defense (DOD) to meet any OMB-imposed quotas on public-private competitions conducted under OMB Circular A-76. In the Omnibus Appropriations Act for Fiscal Year 2003 (Public Law 108-7), Congress directed that such competition quotas could only be used if they are based on an analysis of past activities and are consistent with the stated mission of the executive agency. The committee is concerned that in order to meet OMB performance ratings, the Department and all federal agencies continue to be assigned specific competition quotas.

The committee notes that this section in no way prevents DOD managers from subjecting federal civilian employees to OMB Circular A-76 reviews. However, such decisions must be made independently of any direction or requirement from OMB.

This section would give federal employees appeal rights to have contracting out-related decisions, whether or not conducted using Office of Management and Budget (OMB) Circular A-76 procedures, reviewed by the Government Accountability Office (GAO). A majority of employees performing a function or activity would be allowed to choose a representative to appeal such decisions to the GAO, and to intervene in actions before the Court of Federal Claims.

Section 326 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375) allows an appeal to be filed on behalf of federal employees by an Agency Tender Official (ATO), a senior procurement official acting on behalf of the employees, only in A-76 competitions. However, the committee is concerned that federal employees may not be adequately represented and questions whether an agency tender official would have sufficient resources to employ qualified counsel. Furthermore, the committee notes that there are many instances in which there is no ATO at all, such as in a streamlined OMB Circular A-76 competition, which can include up to 65 employees.

This section would make government-wide the revisions made by the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) to the conduct of public-private competitions by the Department of Defense under section 2461, title 10, United States Code.

This section would reauthorize and expand section 338 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136) to allow the Secretary of the Air Force and the Secretary of the Navy to conduct demonstration projects to evaluate the benefits of promoting workers who perform multiple trades. Wage grade journeymen at Air Force Air Logistics Centers and Navy Fleet Readiness Centers would qualify to learn an additional trade and be rewarded with a one-grade promotion. The section explains that the worker must use the new trades at least 25 percent of the time during the worker's work week. It also would require the Government Accountability Office (GAO) to report to the congressional defense committees on the demonstration project within 30 days after the last day of the fiscal year in which the demonstration project occurs.

SUBTITLE D--EXTENSION OF PROGRAM AUTHORITIES

SECTION 341--EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE

This section would amend Section 343 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398) to authorize the Secretary of the Army to extend the Arsenal Support Initiative Program through fiscal year 2010.

SECTION 342--EXTENSION OF PERIOD FOR REIMBURSEMENTS FOR HELMET PADS PURCHASED BY MEMBERS OF THE ARMED FORCES DEPLOYED IN CONTINGENCY OPERATIONS

This section would extend the period during which members of the armed forces deployed in contingency operations may request and receive reimbursement for helmet pads that are purchased at personal expense. This section would cover purchases made through September 30, 2007, and would give the service member up to a year to submit a claim for reimbursement. This section does not allow reimbursement for purchases made on behalf of a service member. Reimbursements would be derived from supplemental appropriations for ongoing military operations.

SUBTITLE E--REPORTS

SECTION 351--INCLUSION OF NATIONAL GUARD READINESS FOR CIVIL SUPPORT MISSIONS IN QUARTERLY PERSONNEL AND UNIT READINESS REPORT

This section would require the Department of Defense (DOD) to begin reporting on the readiness of the National Guard to respond to civil support mission requirements. The report would be included in the quarterly readiness report to Congress provided to the congressional defense committees and also reported to the state governors.

The committee is concerned that the National Guard, with its dual federal and state roles, has been in demand to meet both evolving overseas operations and emerging homeland security requirements. During the response to Hurricane Katrina, over 50,000 National Guard members from all 50 states were activated to assist in the response effort, illustrating the nation's reliance on National Guard forces to respond to large-scale, multi-state events. Until recently, it has been assumed that the National Guard could perform its typical civil support missions with the equipment it had on-hand for its federal warfighting missions. However, the National Guard's equipment inventories in the United States have significantly decreased because of overseas operations, particularly in the Army National Guard.

While the Department measures the readiness of all of its forces for their wartime missions, it does not routinely measure the readiness of National Guard forces for their civil support missions. The Secretary of Defense is required by section 482 of title 10, United States Code, to establish a comprehensive readiness reporting system with which the Department can measure the military's capability to carry out the National Security Strategy, Defense Planning Guidance, and the National Military Strategy in an objective, accurate and timely manner. The Department is also required to report to Congress on the status of the National Guard's equipment readiness for its wartime missions, but it is not required to report readiness of its civil support missions. Without a routine system for assessing National Guard readiness, the Department of Defense, Congress and the state governors lack information on whether the National Guard has the resources it needs to respond effectively to the consequences of natural or manmade disasters. As the Department defines domestic mission requirements, it will be better able to assess shortfalls and target investments to highest priority needs to ensure that the National Guard is prepared to respond to domestic events. This report would allow Congress and the governors to oversee Guard readiness and ensure resources are properly applied to address potential risks.

This section would require that the Secretary of Defense submit a report on the readiness of the ground forces to the congressional defense committees. This report would call for an assessment of current readiness and a plan for improving the readiness of active and reserve component units. This report would be required annually and would be submitted at the same time as the President's budget request. The report would be reviewed by the GAO and the results of this review sent to the congressional defense committees. This report and plan would include the following components:

(1) A summary of the current reported readiness of all reporting units and a summary of the reported readiness of the services' major combat units by readiness level as reflected in the Department of Defense's (DOD) Status of Resources and Training system;

(2) The extent to which actual readiness ratings are being upgraded based on commanders' judgment, and DOD's efforts to analyze trends and implications of such upgrades;

(3) DOD's goals for managing readiness in terms of the number of units and/or percentage of the force that it plans to maintain at the various levels of readiness and the timeframes for achieving these goals;

(4) A prioritized list of items and actions that the Department believes are needed to significantly improve the readiness of units and achieve the aforementioned goals and timeframes; and

(5) A detailed investment strategy and plan by fiscal year for each year of the Future Years Defense program that outlines the resources needed to implement DOD's plan for improving readiness, including how resources identified in this plan related to funding requested in DOD's annual budget, and how these resources will specifically enable the Department to achieve its readiness goals in desired timeframes.

Given the demands on the Department to meet commitments associated with ongoing operations, the intensity and duration of these operations, and the need for the Department to maintain the capability to meet other commitments beyond these operations, the committee is becoming increasingly concerned about the near-term and long-term readiness of the total force, particularly with respect to the Army and Marine Corps. Furthermore, DOD's plans to increase the size of the Army and Marine Corps will add additional challenges to maintaining a trained and ready force. Despite significant funding provided to the Department in the past few years to address readiness needs, particularly for equipping, manning, and training, readiness trends continue to decline. The committee believes that the Department of Defense must arrest this decline and rebuild degraded ground forces.

SECTION 353--PLAN FOR OPTIMAL USE OF STRATEGIC PORTS BY COMMANDER OF SURFACE DISTRIBUTION AND DEPLOYMENT COMMAND

This section would require the commander of the Surface Distribution and Deployment Command (SDDC) to develop a plan to ensure optimal use of strategic ports, to include consultation with the local port authority where there is no SDDC presence. The committee is concerned that there is no guidance related to assignment of priorities for use of strategic ports or regarding the determination of where there should be an SDDC presence and coordination with local authorities where there is no SDDC presence. Additionally, the committee is troubled by the absence of guidance pertaining to the allocation of materials and facilities to meet the Department of Defense's national security needs.

This section would require the Secretary of Defense to provide for an independent assessment of the viability of the Civil Reserve Air Fleet (CRAF) to be conducted by a federally-funded research and development center. The committee is concerned about the risks to the charter air industry as a result of the expanded use of these carriers by the Department of Defense (DOD). Since September 11, 2001, the Department has significantly increased its global mobility requirements with much of this business focused on a small segment of the charter air industry. The committee is concerned that too great a reliance on DOD business versus commercial business could have a negative impact on these carriers should the Department's requirements suddenly change. Therefore, the assessment shall examine defense planning for organic lift requirements, commercial market factors including the impact of over-reliance on DOD business, and any barriers to the viability of CRAF. The report shall also include recommendations for improving the CRAF program. The report would be submitted to the congressional defense committees by April 1, 2008.

SECTION 355--ANNUAL REPORT ON MATERIEL AND EQUIPMENT

This section would amend chapter 131 of title 10, United States Code, by adding a section to require the Secretary of Defense to report to the congressional defense committees annually on the material in the prepositioned stocks. This report, which would be submitted by the distribution date of the President's budget request, must provide detail on the following:

(1) The level of fill for major end items of equipment and spare parts in each prepositioned set as of the end of the fiscal year covered by the report.

(2) The material condition for equipment in prepositioned stocks rated according to the Department of Defense Status of Resources and Training system and grouped by category or major end item.

(3) A list of major end items of equipment drawn from the stocks in the prior year and how that equipment was used and if it was returned to the stocks.

(4) A timeline for reconstitution of shortfalls in the prepositioned stocks.

(5) An estimate of the funds required to restore stocks to 100% and the funding plan.

(6) A list of Operations Plans affected by any shortfalls and actions taken to mitigate risk that prepositioned shortfalls may create.

The Department of Defense's report must address combat equipment, sustainment and ammunition in stocks held by any of the services. The report would be unclassified and may contain a classified annex. The Government Accountability Office would review the report and provide a report to the congressional defense committees on their findings.

The committee recognizes the tremendous strategic flexibility that prepositioned materiel offers the combatant commanders. The committee is very concerned, however, with the depletion of this material to support Operation Iraqi Freedom. The committee believes that the degraded posture of the prepositioned materiel stocks significantly increases strategic risk to U.S. interests. The committee believes that the current plan for reconstituting the prepositioned stocks is not supported by a solid plan to reset, acquire equipment or to fund the requirement. The committee expects that the report required by this section will address these concerns.

SECTION 356--CONDITIONS ON RELOCATION OF NORTH AMERICAN AEROSPACE DEFENSE COMMAND CENTER AND RELATED OPERATIONS FROM CHEYENNE MOUNTAIN TO PETERSON AIR FORCE BASE

This section would suspend relocation efforts from Cheyenne Mountain to Peterson Air Force Base until the Secretary of Defense submits a report on the costs and benefits associated with the relocation and completion of a review by the Comptroller General.

SECTION 357--REPORT ON PUBLIC-PRIVATE PARTNERSHIPS

This section would require the Secretary of Defense to submit a report to the House Committee on Armed Services and the Senate Committee on Armed Services by April 1, 2008, on the public-private partnerships at the Department of Defense Centers of Industrial and Technical Excellence (CITEs). Required elements of the report are a description of common approaches and procedures, cost methodologies and reimbursement guidance, contract negotiation procedures, commercial practices, Class 2 design authority, and plans to expand core capabilities.

The committee is concerned that the CITEs are not using consistent approaches for public-private partnerships. The committee understands that the lack of uniform standards has created an environment where these partnerships take between two to four years to implement. The committee believes that without a standard approach for the military departments, the CITEs will not be able to adopt best-business practices, maintain core competency requirements, maximize existing facility capacity, decrease the cost of services and products, or lower the cost of maintaining the logistics infrastructure.

SUBTITLE F--OTHER MATTERS

SECTION 361--AUTHORITY FOR DEPARTMENT OF DEFENSE TO PROVIDE SUPPORT FOR CERTAIN SPORTING EVENTS

This section would authorize the Secretary of Defense to support sporting events sanctioned by the United States Olympic Committee (USOC) through the Paralympic Military Program. The USOC Paralympic Military Program provides opportunities for military personnel and veterans with service-connected physical disabilities to participate in sporting competitions as a regular and ongoing part of their rehabilitation and recovery. Additionally, this section would authorize the Secretary to support for USOC-sanctioned national or international paralympic sporting events that are governed by the International Paralympic Committee, when those events are held in the United States and when participation exceeds 100 amateur athletes. The section would also authorize funding for support of these events to be provided from the Department of Defense account for the Support For International Sporting Competitions, with the limitation that funding may not exceed more than $1.0 million in any fiscal year.

SECTION 362--REASONABLE RESTRICTIONS ON THE PAYMENT OF FULL REPLACEMENT VALUE FOR LOST OR DAMAGED PERSONAL PROPERTY TRANSPORTED AT GOVERNMENT EXPENSE

This section would allow the Department of Defense (DOD) to require compliance with reasonable conditions for military or civilian DOD employees to receive full replacement value coverage for lost or damaged personal property. This section offers guidance on additional implementation of section 363 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364). Section 363 mandated that the Department provide full replacement value to military and civilian employees through a contract with a transportation provider, effective March 1, 2008.

Providing full replacement value would boost morale for DOD military and civilian employees who must undergo several moves throughout their career. An unintended consequence of such policies, however, may be the impact on capable and viable small businesses that may not be able to afford the necessary insurance. This section would require the Secretary of Defense to analyze participation by small companies in the Full Replacement Value program and make any necessary recommendations for improving small business participation in the program.

SECTION 363--PRIORITY TRANSPORTATION ON DEPARTMENT OF DEFENSE AIRCRAFT OF RETIRED MEMBERS RESIDING IN COMMONWEALTHS AND POSSESSIONS OF THE UNITED STATES FOR CERTAIN HEALTH CARE SERVICES

This section would amend section 2641 of title 10, United States Code, to provide space-available transportation on Department of Defense aircraft for TRICARE beneficiaries between a U.S. territory and another location if such transportation is necessary in order to provide specialized care that is not otherwise available in the U.S. territory in which they are located. Such TRICARE beneficiaries would retain a priority level equivalent to that provided to unaccompanied dependents on environmental and morale leave. The TRICARE beneficiary afforded space-available transportation under this section would be entitled to have a single dependent accompany them with the same priority.

In the committee report (H. Rept. 109-89) accompanying the National Defense Authorization Act for Fiscal Year 2006, the committee directed the Secretary of Defense to reassess the Air Force's decision to discontinue funding support for TRICARE beneficiaries and their family members living within the Pacific Air Forces area of responsibility, or revise the DOD policy for reimbursement of certain travel expenses covered in section 1074i of title 10, United States Code, to include all eligible TRICARE beneficiaries residing in the flag territories of the United States. The Department reported that the Joint Federal Travel Regulation does not authorize government-funded travel for routine medical care (including referred specialty appointments) for military retirees and their family members living overseas. This section would require the Secretary of Defense to identify the administrative actions that are needed to be executed in order to provide relief to the affected TRICARE beneficiaries residing in the flag territories of the United States and to communicate the Secretary's strategy for implementing such administrative actions in a report to Congress by January 31, 2008.

SECTION 364--RECOVERY OF MISSING MILITARY PROPERTY

This section would amend sections 2788 and 2789 of title 10, United States Code, to make uniform the manner by which the military departments recover missing military property. The Army and the Air Force presently each have statutes that facilitate the recovery of missing military property, sections 4832 and 4836 and sections 9832 and 9836 of title 10, United States Code, respectively, but the Navy and Marine Corps do not have equivalents to either statute and, accordingly, recovery of missing Navy and Marine Corps property is not handled in the same manner as similar instances of missing Army or Air Force property. This section would clarify that there is no such thing as a `holder in due course' or a `bona fide purchaser without notice' of U.S. military property. This section would also uniformly place the burden to prove title on the property holder and would allow the immediate recovery of the missing property.

SECTION 365--RETENTION OF ARMY COMBAT UNIFORMS BY MEMBERS OF ARMY DEPLOYED IN SUPPORT OF CONTINGENCY OPERATIONS

This section would allow the Secretary of the Army to allow soldiers deployed more than 30 days in support of contingency operations to retain the exterior articles of the Army combat uniform that were issued for the deployment.

SECTION 366--ISSUE OF SERVICEABLE MATERIAL OTHER THAN TO ARMED FORCES

This section would extend, unto all of the services, the existing Army authority to issue excess arms, tentage and equipment to Junior Reserve Officers Training Corps (JROTC) in support of training. The weapons issued for training would be magazine rifles that are not the current service model and a limited amount of ammunition. This section would also grant authority to the services to establish camps for JROTC cadet training.

SECTION 367--PROHIBITION ON DEACTIVATION OF 36TH RESCUE FLIGHT

This section would prohibit any action by the U.S. Air Force to deactivate the 36th Rescue Flight (RQF) assigned to Fairchild Air Force Base in Spokane, Washington. The committee strongly supports the 36th RQF and is very concerned that the Air Force intends to deactivate the unit without certifying to Congress that equivalent search and rescue capabilities are available for the region in support of the National Response Plan. Section 1085 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375) required certification that `equivalent search and rescue capabilities will be provided, without interruption' before search and rescue capabilities at a military installation may be eliminated or reduced.

The committee notes that the 36th RQF is part of the National Search and Rescue Plan and provides search and rescue support to parts of Washington, Idaho, Montana and Oregon and has been credited with saving over 600 lives since its inception in 1971. The committee also notes that the 36th RQF is the only search and rescue unit in the region with helicopters equipped with night vision goggles, on-board flight medics, a hoist, forward looking infrared, and crews trained for operations in inclement weather and rugged terrain.

This section would prohibit the expenditure of funds for initial flight screening at Pueblo Memorial Airport in Pueblo, Colorado, until the Air Force and the City of Pueblo have developed a plan to meet the Air Force crash, fire and rescue requirements to support Air Force flight training operations at Pueblo Memorial Airport. The committee notes that the report required by section 346 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) has not been delivered to the congressional defense committees.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

OVERVIEW

The committee commends the Secretary of Defense for proposing to permanently increase the authorized end strength for the active Army to 547,000, and to 202,000 for the active Marine Corps by fiscal year 2012. However, the President's request only contained funding for an increase of 7,000 for the Army and an increase of 5,000 for the Marine Corps in fiscal year 2008. The committee remains concerned that the budget request for the active components of the Army and the Marine Corps is too low for the current requirements placed on those services by the national security strategy. The committee continues to recommend active end strength levels greater than those requested. The committee's recommendation for fiscal year 2008 would increase the active Army end strength by 36,000 and the Marine Corps end strength by 9,000 above the budget request.

The committee is concerned that continued military-to-civilian conversions, particularly within the military medical community, are having an adverse impact on access and quality-of-care being provided to service members and their families. The committee heard directly from military families facing difficulties in accessing care at military treatment facilities during a hearing on total force readiness. In addition, the treatment of wounded warriors at Walter Reed Army Medical Center and at other military medical treatment facilities requires a review of the assumptions and evaluations that were previously made in support of these conversions. Therefore, the committee proposes to prohibit further military-to-civilian conversions in the military medical community in section 703 of this Act, and proposes to restore the end strength and associated funding for the conversions, as well as restore the proposed manpower reductions as directed in program decision memorandum four for Navy medicine for fiscal year 2008.

LEGISLATIVE PROVISIONS

SUBTITLE A--ACTIVE FORCES

SECTION 401--END STRENGTHS FOR ACTIVE FORCES

This section would authorize the following end strengths for active duty personnel of the armed forces as of September 30, 2008:

The authorizations contained in this section for the Army and Marine Corps exceed the end strengths for those services requested in the fiscal year 2008 budget by 36,000 and 9,000, respectively, because the budget request did not provide adequate manning levels for the Army and Marine Corps to meet current operational requirements. Additional funding for this end strength increase is recommended in Title XV of this Act.

The authorizations contained in this section for the Army, Navy, Marine Corps, and Air Force end strengths include 489 for the Navy to restore the reduction in end strength in Navy Medicine, and it would also restore the military end strength for the Navy by 209 and the Air Force by 963, which was reduced to accommodate the military-to-civilian conversions programmed for fiscal year 2008 as directed by Program Budget Decision 712. The proposed increase in Army end strength would accommodate the restoration of 723 military positions within the Army.

In addition, the committee understands that the Air Force plans to modernize and upgrade only 56 of the total 76 B-52 aircraft in the inventory. The committee strongly opposes a strategy to reduce capability in present day conventional long-range strike capability without a replacement platform and recommends an authorization increase of 88 enlisted manpower personnel for the B-52 bomber fleet and provides $5.3 million for the additional end strength.

This section would establish new minimum active duty end strengths for the Army, Navy, Marine Corps and Air Force as of September 30, 2008. The committee recommends 525,400 as the minimum active duty end strength for the Army, 329,098 as the minimum active duty end strength for the Navy, 189,000 as the minimum active duty end strength for the Marine Corps, and 329,563 as the minimum active duty end strength for the Air Force.

SECTION 403--ADDITIONAL AUTHORITY FOR INCREASES OF ARMY AND MARINE CORPS ACTIVE DUTY END STRENGTHS FOR FISCAL YEARS 2009 AND 2010

This section would authorize additional increases of active duty end strength for the Army and for the Marine Corps in fiscal years 2009 and 2010 above the strengths authorized for those services in fiscal year 2008. Over the two-year period, the Army would be authorized to increase active duty end strength above the fiscal year 2008 authorization up to a total of 22,000, and the Marine Corps would be authorized to increase active duty end strength above the fiscal year 2008 authorization up to a total of 13,000.

SECTION 404--INCREASE IN AUTHORIZED STRENGTHS FOR ARMY OFFICERS ON ACTIVE DUTY IN THE GRADE OF MAJOR

This section would increase the number of Army officers authorized to serve in the grade of major by approximately 2,850 from 13,300 to 16,150.

SECTION 405--INCREASE IN AUTHORIZED STRENGTHS FOR NAVY OFFICERS ON ACTIVE DUTY IN THE GRADES OF LIEUTENANT COMMANDER, COMMANDER, AND CAPTAIN

This section would increase the number of Navy officers authorized to serve in the grades lieutenant commander, commander, and captain as indicated below:

(1) Lieutenant commander by approximately 480 from 9,550 to 10,030;

(2) Commander by approximately 300 from 6,000 to 6,300; and

(3) Captain by approximately 130 from 2,620 to 2,750.

SUBTITLE B--RESERVE FORCES

SECTION 411--END STRENGTHS FOR SELECTED RESERVE

This section would authorize the following end strengths for Selected Reserve personnel, including the end strength for reserves on active duty in support of the reserves, as of September 30, 2008:

SECTION 415--MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO BE ON ACTIVE DUTY FOR OPERATIONAL SUPPORT

This section would authorize, as required by section 115(b) of title 10, United States Code, the maximum number of reserve component personnel who may be on active duty or full-time national guard duty during fiscal year 2008 to provide operational support. The personnel authorized here do not count against the end strengths authorized by sections 401 or 412.

SECTION 416--FUTURE AUTHORIZATIONS AND ACCOUNTING FOR CERTAIN RESERVE COMPONENT PERSONNEL AUTHORIZED TO BE ON ACTIVE DUTY OR FULL-TIME NATIONAL GUARD DUTY TO PROVIDE OPERATIONAL SUPPORT

This section would require that by March 1, 2008, the Secretary of Defense conduct a review of the long term operational support missions being performed by reserve component personnel under section 115(b) of title 10, United States Code, and submit the results of that review to Congress. Section 115(b) authorizes reserve component personnel to be on active duty, or full-time national guard duty, for more than three consecutive years, or for more than three years cumulatively out of four. The intent of the review is to determine whether missions that require such long-term personnel commitments should continue to be manned under the authorizations of section 115(b), or under other manning authorizations. This section would also require that future budget justifications materials provided to Congress illuminate the use of the reserve components under section 115(b).

SECTION 417--REVISION OF VARIANCES AUTHORIZED FOR SELECTED RESERVE END STRENGTHS

This section would increase the flexibility of the Secretary of Defense to vary the end strength of any component of the Selected Reserve by up to three percent above or below the authorized end strength for the component. The current variance authorized by title 10, United States Code, is two percent.

SUBTITLE C--AUTHORIZATION OF APPROPRIATIONS

SECTION 421--MILITARY PERSONNEL

This section would authorize $115,416,839,000 million to be appropriated for military personnel. This authorization of appropriations reflects both reductions and increases to the budget request for military personnel that are itemized below:

This section would transfer $150.0 million from unobligated balances of the National Defense Stockpile Transaction Fund to the Miscellaneous Receipts of the United States Treasury to pay for direct spending costs arising from section 702 in this Act.

TITLE V--MILITARY PERSONNEL POLICY

OVERVIEW

The committee remains concerned that support for our troops and their families continues to remain a priority, particularly as we enter another year of highly demanding military operations in the Middle East. Many soldiers are facing their third deployment, and Marines have seen four or even five deployments over the past several years. The committee is concerned about the toll these continued deployments have on our armed forces and their families.

As part of the Army's effort to grow the force, the committee proposed to increase the annual limit on the number of Reserve Officer Training Corps scholarships that may be awarded to cadets who serve in the reserve components. The committee is aware that the Department had proposed a provision that would eliminate the annual limit. However, the proposal generated significant mandatory spending that the committee could not overcome to accommodate the request. As a result, the committee proposes a modest increase in the annual limit to help the Army reserve components to grow their officer force to meet the increased demand being placed on the reserve components.

The committee remains committed to ensuring that the personnel policy guidelines established in law remain current, valid, and effective. Accordingly, the committee includes a series of provisions that would improve the process for appointing and accessing officers, clarify mandatory separation and movement policies for senior officers, and facilitate the transition of officers to enlisted status.

The committee also proposes to consolidate the educational assistance programs for service members. The committee recommends that the oversight and administration of the educational assistance program for reserve members be transferred to the House Committee on Veterans' Affairs. Currently, the committee maintains authority for the reserve educational assistance program, while the House Committee on Veterans' Affairs maintains authority for the active duty educational assistance program. This has lead to disparate treatment in educational benefits between the active and reserve forces. This difference has become a notable point of contention as the reserve components have moved from a reserve strategic force to an operational reserve force. Combining the oversight and responsibility of the active and reserve educational programs under one committee of jurisdiction will help to ensure fair and equitable treatment for both the active and reserve forces.

The committee continues to make recommendations to improve the quality of life for service members and their families and to recognize the sacrifices these individuals are making in support of worldwide operations. The committee recommends supplemental funding, including $50.0 million, for local educational agencies that are heavily impacted by the attendance of military dependents, and an additional $15.0 million for local educational agencies that experience significant increases or decreases in the average daily attendance of military dependent students due to military force structure changes.

Americans continue to show their support and compassion for our troops. Each day, donations for those serving in combat and those who have been wounded or injured in service to our nation continue to pour in from across the country--school children, community organizations, religious organizations, to individuals who just want to do something to `support the troops.' The outpouring of support has been phenomenal and the committee seeks to encourage these efforts by extending the authority for the Secretary of Defense to accept gifts, devices, and bequests that benefit members of the armed forces and helps to improve the quality of life for themselves and their families.

ITEMS OF SPECIAL INTEREST

ACCESS TO MEMBER SOCIAL SECURITY NUMBERS

The committee continues to be concerned that commanders and other managers within the Department of Defense are not doing enough to protect the social security numbers of service members. The committee is aware of anecdotal accounts of careless handling of documents with social security numbers, including the posting of rosters on public bulletin boards. Such examples of inappropriate handling of personal data suggest that procedures for controlling documents with member social security numbers are not standardized and are not widely disseminated. Accordingly, the committee directs the Secretary of Defense to review the policies regarding the safeguarding of social security numbers and other personal data within the Department of Defense and develop a more specific standardized policy accompanied by an aggressive Department-wide education program.

The committee directs the Secretary to submit to the congressional defense committees a report, by October 1, 2007, on his findings and recommendations for implementing a standardized policy for safeguarding personal information.

COST AND IMPACT OF ALLOWING SERVICE MEMBERS TO UTILIZE THEIR GI BILL TO REPAY STUDENT LOANS

The committee directs the Secretary of Defense to review the impact of allowing those service members who qualify to receive GI Bill benefits to use their education benefit to repay student loans for education that would otherwise have qualified under the GI Bill education benefits program. The Secretary should include in the review student loans for which service members owe a debt on past education for which they have received even if the education was obtained prior to the service member entering the military and becoming eligible for the GI Bill.

The purpose of the review is to identify:

(1) The number of service members who will be eligible to receive this benefit;

(2) The overall impact of allowing service members to receive this benefit, to include exhausting their benefits when repaying these student loans;

(3) The estimated cost of allowing service members to receive this benefit; and

(4) The impact of extending the program only to include those service members who are recipients of the Purple Heart and/or those service members that have been injured and not returned to duty and the number of service members that would qualify if this program were limited to those two groups.

The committee directs the Secretary of Defense to provide to the Senate Committee on Armed Services and the House Committee on Armed Services a report on the results of this review no later than 90 days after the date of enactment of this Act.

DEPLOYMENT IMPACT ON MILITARY MINOR DEPENDENTS

The committee is concerned that the high deployment tempo of service members is having a detrimental impact on their children. A recent study found that the rate of child abuse among military families, including the reserve component, may increase due to deployments of service members. While there is deep concern regarding the pressures that military families face during deployments, there is a lack of information on how such deployments may contribute to child maltreatment. The committee directs the Secretary of Defense to conduct a study, in consultation with the Center for Disease Control and Prevention, of the level of risks of child abuse and neglect among military minor dependents that may result due to the increased operational tempo of service members. The committee is concerned that the service members of our nation's ground forces in particular may be at highest risk and, therefore, urges the Secretary to focus the review on the impact of deployments on the Army and the Marine Corps. The committee directs the Secretary to submit to the congressional defense committees a report by December 31, 2008, on the findings of the study of the potential impact of deployment on child abuse rates among military families and his assessment and recommendations to address any such potential impact.

DISPLAY OF THE NATIONAL LEAGUE OF FAMILIES POW/MIA FLAG AT DEPARTMENT OF DEFENSE FACILITIES

The committee notes that section 902 of title 36, United States Code, requires the Department of Defense to display the National League of Families Prisoner of War/Missing in Action (POW/MIA) flag on six occasions annually. The committee further notes that the Secretary of Veterans Affairs voluntarily displays the POW/MIA flag at the Department of Veterans Affairs' headquarters any day on which the flag of the United States is displayed, and, as required by law, displays the POW/MIA flag at all medical centers of the Department of Veterans Affairs any day on which the flag of the United States is displayed. The committee encourages the Secretary of Defense to consider displaying the POW/MIA flag at the Department of Defense's headquarters and on military installations on any day on which the flag of the United States is displayed.

INCREASED FUNDING FOR PRISONER OF WAR AND MISSING PERSONNEL OPERATIONS

As required by the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), the Department of Defense budget for fiscal year 2008 provided the committee with a five-year overview of the funding required and the funding requested for the Department's Prisoner of War and Missing Personnel affairs programs. In fiscal year 2008, the budget request would support 91 percent, or $8.0 million less than, the total funding required. The Department explained the gap as being wholly attributable to the lack of access to North Korea for investigations. Notwithstanding the current lack of access to North Korea, the committee believes that much work remains to be done and can be done in fiscal year 2008 to account for America's prisoner of war and missing personnel from all wars. Therefore, the committee recommends fully supporting those efforts by increasing the amounts requested as follows: $0.2 million for the Defense POW/MIA Personnel Office, $7.5 million for the Joint POW/MIA Accounting Command, and $0.3 million Air Force Life Sciences Equipment Laboratory.

INCREASED MILITARY OPERATIONS ON GUAM

The committee notes that the Department of Defense intends to add permanent force structure to the military forces located on Guam and that the Department of Defense and the military departments have been assigning increasing numbers of military members and civilian employees to duty on Guam on a temporary basis. The committee recognizes that the permanent increase in force structure and the continuing presence of a significant number of temporary duty personnel are conditions that require the close coordination of the Department of Defense and the Government of Guam to address the requirements of increased military operations on Guam. Accordingly, the committee directs the Secretary of Defense to review the proposed force structure increases, provide an assessment of the current status of planning efforts to prepare for increased military operations on Guam, and to compile, by military service, data regarding the number of military members who were permanently and temporarily assigned to Guam during each of the fiscal years 2003 through fiscal year 2007.

The committee directs the Secretary to submit to the congressional defense committees a report, by November 30, 2007, on the findings of the review of the proposed force structure increases, his assessment of the planning efforts, and the data compiled on permanent and temporary assignments of military members to Guam.

NATIONAL GUARD EDUCATIONAL INITIATIVES

The committee is concerned at the numbers of non-prior service personnel enlisting in the National Guard who do not have a high school diploma. The committee understands that the Chief of the National Guard Bureau has begun efforts to assist National Guard recruits who have enlisted without either a high school degree or general equivalency diploma (GED) to obtain a GED. The committee urges the Chief of the National Guard Bureau to consider employing advanced computer assisted instruction and learning management systems, to assist such National Guard recruits to obtain a GED.

PAY AND RETIREMENT SERVICE CREDIT FOR STUDENTS AT THE UNIFORMED SERVICES UNIVERSITY OF HEALTH SCIENCES AND OTHER EDUCATION PROGRAMS

The committee is concerned that students at government-funded education programs are receiving disparate treatment with regard to the credit they receive for prior military service while enrolled in the education programs. The committee believes that a thorough review of the personnel status of students in government-funded education programs should be conducted to ensure that students are receiving fair and equitable treatment and that each program is postured to attract sufficient numbers of qualified candidates. The committee directs the Secretary of Defense to review the personnel status of students, the pay, treatment, and service credit of prior service members, the grade and promotion status of all students, the credit for service while attending school in terms of pay, promotion, and retirement, and other factors as determined by the Secretary with regard to the following programs:

(1) Armed Forces Health Professions Financial Assistance Programs;

(2) The Uniformed Services University of Health Sciences;

(3) The program to detail commissioned officers as students at medical schools as authorized in section 536 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364);

(4) Programs that provide for medical school attendance by service academy graduates;

(5) Programs for members to attain advanced degrees;

(6) Programs for members to attend law school;

(7) Senior Reserve Officer Training Corps Programs;

(8) Service academies; and

(9) Other educational programs as determined by the Secretary.

The committee directs the Secretary to submit to the Senate Committee on Armed Services and the House Committee on Armed Services a report, by March 31, 2008, on his findings and recommendations regarding the need to legislate changes to personnel policy to ensure fair and equitable treatment of students in government funded education programs and encourage the participation of qualified candidates in those programs.

REVIEW OF PRIVILEGED OR PROTECTED COMMUNICATIONS MADE BY VICTIMS

In the committee report (H. Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007, this committee directed the Secretary of Defense to conduct a review to determine when, and to what extent, pretrial investigations under article 32 of the Uniform Code of Military Justice should be closed to spectators, the media, and others in order to protect witnesses and victims of sexual assault or domestic violence. The Secretary of Defense was also directed to conduct a review of privileged or protected communications made by victims of sexual assaults to health care providers and victim advocates. The purpose of the review was to identify whether changes to the Manual for Courts-Martial should be made to extend the privileges that are already included within Section V of the Military Rules of Evidence to include health care providers and victim advocates. The Secretary of Defense was directed to present to the Senate Committee on Armed Services and the House Committee on Armed Services a report detailing the results of the reviews conducted in these areas no later than April 15, 2007. However, that date has passed and the committee has yet to receive these reports. The committee urges the Secretary of Defense to submit these reports in a timely fashion so that Congress can continue its proper oversight and ensure that these issues are addressed in a timely manner.

LEGISLATIVE PROVISIONS

SUBTITLE A--OFFICER PERSONNEL POLICY

SECTION 501--ASSIGNMENT OF OFFICERS TO DESIGNATED POSITIONS OF IMPORTANCE AND RESPONSIBILITY

This section would authorize officers serving in the grades of lieutenant general or vice admiral and general or admiral to continue for up to 60 days to hold those grades following reassignment from positions authorized for those grades, unless sooner placed under orders to another position authorized for those grades.

SECTION 502--INCREASE IN YEARS OF COMMISSIONED SERVICE THRESHOLD FOR DISCHARGE OF PROBATIONARY OFFICERS AND FOR THE USE OF FORCE SHAPING AUTHORITY

This section would amend section 630 of title 10, United States Code, to extend the probationary period of active duty and reserve officers to six years of commissioned service from less than five years of commissioned service. Extending the probationary period would allow for involuntary separation prior to six years of commissioned service, rather than forcing the services to retain officers until they twice fail to be selected for promotion to lieutenant commander or major.

SECTION 503--SPECIAL PROMOTION AUTHORITY FOR NAVY CAREER MILITARY PROFESSORS

This section would amend section 641 of title 10, United States Code, to authorize permanent military professors or career military professors to be appointed to the higher grade of captain, provided that the individual completes six years of service as a permanent military professor or career military professor. Such appointments would be subject to the President's approval with the advice and consent of the U.S. Senate.

SUBTITLE B--RESERVE COMPONENT MATTERS

SECTION 511--MANDATORY SEPARATION OF RESERVE OFFICERS IN THE GRADE OF LIEUTENANT GENERAL OR VICE ADMIRAL AFTER COMPLETION OF 38 YEARS OF COMMISSIONED SERVICE

This section would mandate that reserve component officers serving in the grades of lieutenant general or vice admiral be separated from active status upon reaching 38 years of commissioned service. This section would establish a mandatory separation policy that is consistent with the separation of active duty officers in the same grades for years of service.

SECTION 512--CONSTRUCTIVE SERVICE CREDIT UPON ORIGINAL APPOINTMENT OF RESERVE OFFICERS IN CERTAIN HEALTH CARE PROFESSIONS

This section would authorize the Secretary of Defense to grant officer candidates qualified in health care professions that are critically manned within the reserve components with sufficient constructive service credit to be appointed a reserve officer in the grade of captain, or in the Navy Reserve, lieutenant.

SECTION 513--MAXIMUM PERIOD OF TEMPORARY FEDERAL RECOGNITION OF PERSON AS ARMY NATIONAL GUARD OFFICER OR AIR FORCE RESERVE OFFICER

This section would extend the period that members of the national guard may be granted temporary federal recognition from six months to one year.

This section would enable military technicians (dual status), all of whom must maintain membership in the Selected Reserve as a condition of employment, to continue to be employed as technicians when the loss of that membership is the result of a combat-related disability. This section also would provide the secretaries of the Army and the Air Force temporary authority to fill a military technician (dual status) position that is vacant due to the mobilization of the incumbent with a person who is not a dual status technician. This section also would provide authority to defer mandatory separation of a military technician (dual status) until that person attains eligibility for an unreduced annuity, but not beyond age 62.

SECTION 515--WORKING GROUP ON REINTEGRATION OF RESERVE COMPONENT MEMBERS RETURNING FROM DEPLOYMENT

This section would require the Secretary of Defense to establish a working group to identify and assess the reintegration needs of members of the reserve components returning from overseas operational deployment, to include the timing and sequencing of reintegration outreach. The committee notes that there are many programs currently being operated by different services, states, and commands to help returning members of the reserve components make the transition back to civilian life, such as programs in Minnesota, New Hampshire, Oregon, and Washington. The working group will be able to catalog and analyze existing programs, identify best practices, and develop plans to incorporate the best practices across the services.

SECTION 516--NATIONAL GUARD YELLOW RIBBON REINTEGRATION PROGRAM

This section would require the Secretary of Defense, in coordination with the Chief of the National Guard Bureau, to establish a national combat veteran reintegration program, to be known as the Yellow Ribbon Reintegration Program. The committee understands that the reserve component has changed from a strategic reserve to an operational reserve, fully engaged in the global war on terror, and that reserve component members face challenges that are inherently different from their counterparts in the active component. Readjusting to civilian life can be extremely challenging for members of the reserve components returning to their families, hometowns, and civilian employment. The active component has recognized the need for programs that address issues for service members returning from combat and has already instituted such programs. However, members of the reserve components return to their hometowns following demobilization and often do not have access to services and resources that allow them to successfully reintegrate back into society.

This section would require the Chief of the National Guard Bureau to establish an Office for Reintegration Programs to administer all reintegration programs in coordination with state national guard organizations. The committee recommends the office be appropriately staffed with full-time National Guard Bureau personnel, military or civilian, for this purpose. Further, the committee recommends that the Office for Reintegration Programs employ full-time personnel to staff the state Deployment Cycle Support Teams to administer the Yellow Ribbon Reintegration Program at the state level.

The committee recommends that the Yellow Ribbon Reintegration Program include specific reintegration events and activities to take place during four phases of deployment; Pre-Deployment Phase, Deployment Phase, Demobilization Phase, and Post-Deployment-Reconstitution Phase. Activities and programs should focus on service members and their families but should also include community information sessions to educate community leaders, religious leaders, schools, employers, mental health professionals, and family readiness groups about the challenges of reintegration, and what they can do to assist combat veterans and their families successfully reintegrate back into the community.

SECTION 517--ADVANCE NOTICE TO MEMBERS OF RESERVE COMPONENTS OF DEPLOYMENT IN SUPPORT OF CONTINGENCY OPERATIONS

This section would require the Secretary of Defense to ensure that a member of a reserve component, who will be called or ordered to active duty for a period of more than 30 days in support of a contingency operation, will be given a minimum of 30 days notice before the mobilization date with a goal of providing 90 days notice before mobilization. The Secretary may waive these requirements or authorize shorter notice during a war or national emergency declared by the President or Congress or to meet mission requirements. If the waiver or reduction is made on account of mission requirements, this section would require the Secretary to provide Congress a report detailing the reasons for the waiver or reduction and the mission requirements at issue.

SUBTITLE C--EDUCATION AND TRAINING

SECTION 521--REDUCTION OR ELIMINATION OF SERVICE OBLIGATION IN AN ARMY RESERVE OR ARMY NATIONAL GUARD TROOP PROGRAM UNIT FOR CERTAIN PERSONS SELECTED AS MEDICAL STUDENTS AT UNIFORMED SERVICES UNIVERSITY OF THE HEALTH SCIENCES

This section would authorize the Secretary of the Army to modify agreements entered into by cadets in the Reserve Officers' Training Corps who participate in the Guaranteed Reserve Forces Duty Scholarship Program to allow the member to meet previously-agreed commitments to serve in the reserve components by fulfilling active duty service commitments incurred by the member as a physician following graduation from the Uniformed Services University of Health Sciences.

SECTION 522--INCREASE IN ANNUAL LIMIT ON NUMBER OF ROTC SCHOLARSHIPS UNDER ARMY RESERVE AND ARMY NATIONAL GUARD PROGRAM

This section would increase the limitation on the number of Reserve Officers Training Corps scholarships that may be awarded each year from 416 to 424 to cadets who wish to serve in the reserve components of the Army.

SECTION 523--REVISIONS TO AUTHORITY TO PAY TUITION FOR OFF-DUTY TRAINING OR EDUCATION

This section would authorize the secretaries of the military departments to pay tuition assistance to certain members of the Ready Reserve who serve in critical occupational specialties and who agree to a specified period of additional service in the ready reserve. The critical occupational specialties would be determined by the secretaries of the military departments.

SECTION 524--NATIONAL DEFENSE UNIVERSITY MASTER'S DEGREE PROGRAMS

This section would authorize the National Defense University to award a Master of Arts degree in Strategic Security Studies to program graduates at the School for National Security Executive Education. As required by law, the Secretary of Education has formally approved the Master of Arts degree in Strategic Security Studies at the National Defense University.

SECTION 525--RECODIFICATION IN TITLE 38, UNITED STATES CODE, OF CERTAIN EDUCATIONAL ASSISTANCE PROGRAMS FOR MEMBERS OF THE RESERVE COMPONENTS

This section would recodify sections 1606 and 1607 of title 10, United States Code, to title 38. As of October 1, 2008, payments for educational assistance, under this section, would be made from funds appropriated or otherwise made available to the Department of Veterans Affairs for the payment of readjustment benefits. However, individuals designated by the secretary of the military department concerned, who are given an increased rate of educational benefits due to a skill or specialty in which there is a critical shortage, commonly referred to as a `kicker,' would be funded from amounts in the Department of Defense Education Benefits Fund, but only for that specified amount of increased benefit. This section would require the Secretary of Defense and the Secretary of Veterans Affairs to enter into an agreement to transfer the funds from the Department of Defense Education Benefits Fund to the Department of Veterans Affairs to pay for those section 1606 and 1607 benefits which the Department of Veterans Affairs will now be responsible for paying. The funds transferred to the Readjustment Benefits Account of the Department of Veterans Affairs would only be used to pay those section 1606 and 1607 benefits which were earned prior to October 1, 2008. This transfer of funds would be made as quickly as possible to ensure that the Department of Veterans Affairs will have the funds necessary to pay these section 1606 and 1607 benefits.

SECTION 526--SECRETARY OF DEFENSE EVALUATION OF THE ADEQUACY OF THE DEGREE-GRANTING AUTHORITIES OF CERTAIN MILITARY UNIVERSITIES AND EDUCATIONAL INSTITUTIONS

This section would require the Secretary of Defense to evaluate the degree-granting authorities of certain military universities and educational institutions to assess whether the current process remains adequate, appropriate, and responsive to meet emerging military service education requirements.

This section would allow the Southold, Mattituck, and Greenport High Schools, located within the town of Southold in Suffolk County, New York, to be treated as a single institution for the purposes of maintaining a Navy Junior Reserve Officers' Training Corps unit.

SUBTITLE D--GENERAL SERVICE AUTHORITIES

SECTION 531--AUTHORITY TO REDUCE REQUIRED SERVICE OBLIGATION FOR INITIAL APPOINTMENT OF QUALIFIED HEALTH PROFESSIONALS AS OFFICERS IN CRITICAL SPECIALTIES

This section would provide a waiver to the mandatory service obligation for a select group of experienced physicians who are willing to serve their country in uniform for at least two years. The committee recognizes that the Department of Defense faces significant challenges recruiting qualified health professionals, particularly those with critical specialties such as surgeons, orthopedists, dentists, and nurse anesthetists. The committee notes that the Department has stated that it does not intend to reduce the mandatory service obligation for most physician accessions.

SECTION 532--REENLISTMENT IN FORMER ENLISTED GRADE AFTER SERVICE AS AN OFFICER

This section would authorize regular officers to reenlist in their former enlisted grade when separation as an officer is under honorable conditions and the officer is otherwise qualified for enlistment.

SUBTITLE E--MILITARY JUSTICE AND LEGAL ASSISTANCE MATTERS

SECTION 541--AUTHORITY TO DESIGNATE CERTAIN CIVILIAN EMPLOYEES OF THE FEDERAL GOVERNMENT AS ELIGIBLE FOR LEGAL ASSISTANCE FROM DEPARTMENT OF DEFENSE LEGAL STAFF RESOURCES

This section would authorize the secretaries of the military departments to prescribe regulations authorizing legal assistance to designated civilian employees of the federal government serving with, or preparing to serve with, an armed service in support of a contingency operation.

SUBTITLE F--DECORATIONS AND AWARDS

SECTION 551--AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO LESLIE H. SABO, JR., FOR ACTS OF VALOR DURING THE VIETNAM WAR

This section would authorize the President to award the Medal of Honor to Leslie H. Sabo, Jr., who served in the U.S. Army during the Vietnam War. This section would also waive the statutory time limitation under section 3744 of title 10, United States Code.

SECTION 552--AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO HENRY SVEHLA FOR ACTS OF VALOR DURING THE KOREAN WAR

This section would authorize the President to award the Medal of Honor to Henry Svehla, who served in the U.S. Army during the Korean War. This section would also waive the statutory time limitation under section 3744 of title 10, United States Code.

SECTION 553--AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO WOODROW W. KEEBLE FOR ACTS OF VALOR DURING THE KOREAN WAR

This section would authorize the President to award the Medal of Honor to Woodrow W. Keeble, who served in the U.S. Army during the Korean War. This section would also waive the statutory time limitation under section 3744 of title 10, United States Code.

SECTION 554--AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO PRIVATE PHILIP G. SHADRACH FOR ACTS OF VALOR DURING THE CIVIL WAR

This section would authorize the President to award the Medal of Honor to Private Philip G. Shadrach, who served in the U.S. Army during the Civil War. This section would also waive the statutory time limitation under section 3744 of title 10, United States Code.

SECTION 555--AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO PRIVATE GEORGE D. WILSON FOR ACTS OF VALOR DURING THE CIVIL WAR

This section would authorize the President to award the Medal of Honor to Private George D. Wilson, who served in the U.S. Army during the Civil War. This section would also waive the statutory time limitation under section 3744 of title 10, United States Code.

SECTION 556--COLD WAR VICTORY MEDAL

This section would require the Secretary of Defense to design and issue a Cold War Victory Medal to a person, upon application by a service member who served honorably in the armed forces for a minimum of 180 days during the period beginning on September 2, 1945, and ending on December 26, 1991.

SUBTITLE G--IMPACT AID AND DEFENSE DEPENDENTS EDUCATION SYSTEM

SECTION 561--TUITION ASSISTANCE FOR MILITARY DEPENDENTS IN OVERSEAS AREAS WHERE SCHOOLS OPERATED BY DEFENSE DEPENDENTS' EDUCATION SYSTEM ARE NOT REASONABLY AVAILABLE

This section would allow the Secretary of Defense to pay tuition for dependents in overseas areas where there are no Department of Defense schools or an adequate alternative, to attend private boarding schools in the United States, under regulations established by the Secretary.

SECTION 562--CONTINUATION OF AUTHORITY TO ASSIST LOCAL EDUCATIONAL AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES

This section would provide $50.0 million for assistance to local educational agencies that have military dependent students comprising at least 20 percent of the students in average daily attendance during a year. This section would also provide $15.0 million for assistance to local educational agencies that experience significant increases or decreases in the average daily attendance of military dependent students due to military force structure changes, the relocation of military forces from one base to another, and from base closures and realignments. The committee makes this recommendation in connection with its strong continuing support of the need to help local school districts with significant concentration of military students.

SUBTITLE H--OTHER MATTERS

SECTION 571--EXTENSION OF AUTHORITY TO ACCEPT GIFTS, DEVISES, OR BEQUESTS TO BENEFIT MEMBERS OF THE ARMED FORCES, DEPENDENTS, AND CIVILIAN EMPLOYEES OF THE DEPARTMENT OF DEFENSE

This section would extend the authority for the Secretary of Defense to accept gifts for the benefit of members from December 31, 2007, to December 31, 2010.

SECTION 572--UNIFORM PERFORMANCE POLICIES FOR MILITARY BANDS AND OTHER MUSICAL UNITS

This section would allow members of military bands or similar musical units to perform music in their personal capacities, with or without compensation, but when doing so, would require that such members act exclusively outside of their official positions. Members may neither wear their military uniforms nor use their official titles or positions and must comply with all applicable ethics rules. This section would authorize any military band or similar musical unit to produce and distribute recordings to the public at a cost that covers only production and distribution expenses. This section would also require that the funds used for recording expenses be reimbursed to the original funding source.

SECTION 573--REPEAL OF LIMITATION ON NUMBER OF ACADEMIES OF DEPARTMENT OF DEFENSE STARBASE PROGRAM IN A SINGLE STATE

This section would amend section 2193b(c) of title 10, United States Code, to repeal the limitation on the number of Starbase academies allowed per state.

SECTION 574--COMBAT VETERANS MENTORING PROGRAM FOR CURRENT MEMBERS OF THE ARMED FORCES

This section would require the Secretary of Defense to establish a program that provides combat veterans the opportunity to meet and mentor current members of the Armed Forces. The Secretary is required to provide opportunities for combat veterans to meet with current members before, after, and during deployments.

SECTION 575--RECOGNITION OF MEMBERS OF THE MONUMENTS, FINE ARTS, AND ARCHIVES PROGRAM OF THE CIVIL AFFAIRS AND MILITARY GOVERNMENT SECTIONS OF THE ARMED FORCES DURING AND FOLLOWING WORLD WAR II

This section would recognize the men and women who served in the Monuments, Fine Arts, and Archives program under the Civil Affairs and Military Government Sections of the United States Armed Forces for their role in the preservation, protection, and restitution of monuments, works of art, and other artifacts of cultural importance in Europe and Asia during and following World War II.

SECTION 576--PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE VIETNAM WAR

This section would require the Secretary of Defense to conduct a program to commemorate the 50th anniversary of the Vietnam War and to coordinate, support, and facilitate the Vietnam War commemorative programs and activities of the federal government, state and local governments, and other persons and organizations that support the commemorative objectives specified in the section. This section would also authorize the program to continue through 2025, with the Secretary determining the schedule of events and priority of efforts during the duration of the program.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

OVERVIEW

The committee continues to believe that successful recruiting and retention in a wartime environment directly depends on the close oversight of compensation and benefit programs to ensure that they remain robust, flexible, and effective. Accordingly, the committee recommends an across-the-board pay raise of 3.5 percent, one-half of one percent above pay raise levels in the private sector as measured by the Employment Cost Index (ECI). This would be the 9th consecutive year that the pay raise would exceed the ECI level and would result in an average cumulative pay increase of 46 percent over the last 9 years.

The committee also recognizes that some previously adopted compensation policies, bonuses, and special pays require modification to ensure they remain current and effective and the committee recommends a number of such adjustments. The committee also supports the proposal of the Department of Defense's Tenth Quadrennial Review of Military Compensation to consolidate and simplify the system of special and incentive pays. The committee recommends reform of those pays to make them more understandable and easier to administer.

The committee believes that more needs to be done to protect the annuities of surviving military spouses and increase retirement compensation for service members who have been retired with disabilities. The committee recommends a monthly survivor indemnity allowance of up to $40 to partially offset the reduction in the Survivor Benefit Program annuities resulting from concurrent eligibility for Dependency and Indemnity Compensation paid by the Department of Veterans Affairs. Additionally, the committee recommends that retired service members with combat related disabilities be paid an annuity under the combat related special compensation program so long as they have at least 15 years of service.

The committee remains committed to protecting and enhancing military exchange, commissary, and morale, welfare, and recreation programs. Accordingly, the committee has included direction to examine methods for making military resale stores and morale, welfare, and recreation activities more efficient and effective programs.

ITEMS OF SPECIAL INTEREST

BASE ACCESS FOR VENDORS SERVING MILITARY RESALE ACTIVITIES

The committee is disappointed that base access procedures for employees of vendors servicing military resale activities remain cumbersome and costly. The committee believes that establishing a standardized identification card that would facilitate base access on a regional basis can improve these procedures. Specifically, the committee believes that the common access card (CAC) currently employed by the Department of Defense as a universal identification card could be used to afford vendors a simple and cost effective method for their employees to gain access to installations. Therefore, the committee directs the Secretary of Defense to review the procedures for authorizing CACs to determine if vendor employees could be accommodated within the current system and develop recommendations for implementing such an accommodation.

The committee directs the Secretary to submit to the Senate Committee on Armed Services and the House Committee on Armed Services a report, by March 31, 2008, on his findings and recommendations.

COMBINED COMMISSARY AND EXCHANGE STORE

The committee understands that there is a continuing effort to develop a new model for combining commissary and exchange operations into one facility. The committee believes that the development of a combined store model acceptable to both commissary and exchange managers is an urgent matter requiring immediate attention. The refined combined store model is needed to assist the Department of Defense and Congress in determining the residual structure for military resale services at base closure sites. The combined model may also present a new, more efficient and effective option for military resale operations in the future. Therefore, the committee directs the Secretary of Defense to review the current status of negotiations for a new, combined store model and develop recommendations for implementing a new, combined store model.

The committee directs the Secretary to submit to the Senate Committee on Armed Services and the House Committee on Armed Services a report, by March 31, 2008, on his findings and recommendations.

MILITARY RESALE AND MORALE, WELFARE, AND RECREATION ACTIVITIES AT JOINT BASES

The committee is concerned that the process for determining which military resale and morale, welfare, and recreation (MWR) activities will be retained at newly formed joint bases is not fully developed and will yield inconsistent and unfair results. The committee believes that there are potential risks to exchange profits and MWR employee job security that have not been addressed. Therefore, the committee directs the Secretary of Defense to review both the process that will be used to determine the residual structure for military resale and MWR activities at joint bases and the nonappropriated fund personnel management policies that will be employed in the process and confirm the process is effective and fair.

The committee directs the Secretary to submit to the Senate Committee on Armed Services and the House Committee on Armed Services a report, by March 31, 2008, on his findings.

PAYMENT OF IMMINENT DANGER PAY TO MEMBERS WHO SERVE IN COMBAT ZONES FOR SHORT PERIODS

The committee is concerned that members are traveling for short periods to the combat zones associated with Operation Enduring Freedom and Operations Iraqi Freedom and qualifying for imminent danger pay for the entire month. The committee believes that this practice should be curtailed and the entitlement to imminent danger pay be restructured to provide for payment on a day-by-day basis or after a minimum period of service at an authorized location. Accordingly, the committee directs the Secretary of Defense to review current imminent danger pay policies and recommend legislation for the payment of imminent danger pay that would be proportionate to time served at authorized locations.

The committee directs the Secretary to submit to the Senate Committee on Armed Services and the House Committee on Armed Services a report, by March 31, 2008, the Department of Defense's findings and recommendations.

TREATMENT OF RETIRED PAY FOR GENERAL AND FLAG OFFICERS WHO SUBSEQUENTLY RETURN TO SERVICE ON ACTIVE DUTY IN THE RESERVE COMPONENT

The committee has become aware that there may be a number of general and flag officers, as well as other officer and enlisted personnel, who retire from active duty service or are in a retired reserve status and subsequently return to an active status in a reserve component. The National Defense Authorization Act for Fiscal Year 2000, Public Law 106-398, amended title 10, United States Code, to add section 12741, which authorizes such members to elect a reserve retirement upon reaching age 60. This provision allows a member to have his or her retired pay recalculated to include the additional reserve service performed and, if the member was subsequently promoted, to retire in the higher grade. However, there are concerns that such members should be allowed to be transferred back to the retired status at the highest grade held and that such additional service be immediately included in a recomputation of their retired pay upon their return to retirement status. The committee directs the Secretary of Defense to conduct a study on the treatment of general and flag officers, and other service members who are similarly affected, who return from retirement to serve their country.

The report should include at a minimum:

(1) The number of individuals who return from retirement to continue their service in an active status in a reserve component;

(2) Whether a member transferred to an active status should be allowed to have their retired pay recomputed upon their return to a retired status with such computation based on the highest grade held;

(3) The potential cost for a proposed change;

(4) Other policy implications that may result from the change in the treatment of such individuals; and

(5) The implications for other members who return from retired status to serve on active duty.

The Secretary of Defense shall submit the results of his review to the congressional defense committees by March 31, 2008.

LEGISLATIVE PROVISIONS

SUBTITLE A--PAY AND ALLOWANCES

SECTION 601--FISCAL YEAR 2008 INCREASE IN MILITARY BASIC PAY

This section would increase basic pay for members of the uniform services by 3.5 percent effective January 1, 2008. This raise would continue to fulfill Congress's commitment to keeping pay raises for the uniformed services ahead of private sector pay raises. Accordingly, the gap between pay increases for the uniformed services and private sector employees during fiscal year 2008 would be reduced from 3.9 percent to approximately 3.4 percent. This section would also provide that additional costs incurred by authorizing a pay raise that is one-half of one percent above the raise included in the budget request will be addressed in the authorization of appropriations that would be provided in title XV of this Act.

SECTION 602--BASIC ALLOWANCE FOR HOUSING FOR RESERVE COMPONENT MEMBERS WITHOUT DEPENDENTS WHO ATTEND ACCESSION TRAINING WHILE MAINTAINING A PRIMARY RESIDENCE

This section would authorize single reserve component members without dependents to receive basic allowance for housing while attending initial training following accession, so long as the member maintains a permanent residence.

This section would clarify the eligibility criteria for income replacement payments to reservists experiencing extended or frequent mobilization for active duty service including payments to members who are retained on active duty for authorized medical care or for medical evaluation for disability. This section would also clarify the cumulative periods of qualifying service by calculating those periods using days in lieu of months.

SECTION 604--PARTICIPATION OF MEMBERS OF THE UNIFORMED SERVICES IN THRIFT SAVINGS PLAN

This section would authorize pay authorities to make mid-month contributions to the Thrift Savings Plan on behalf of members of the uniformed services.

SECTION 605--ENHANCEMENT OF REFERRAL BONUS TO ENCOURAGE SERVICE IN THE ARMY

This section would authorize an Army referral bonus to be paid to the member or employee who refers an officer candidate who is later appointed as an officer in a health profession designated by the Secretary of the Army.

SECTION 606--GUARANTEED PAY INCREASE FOR MEMBERS OF THE ARMED FORCES OF ONE-HALF OF ONE PERCENTAGE POINT HIGHER THAN EMPLOYMENT COST INDEX

This section would mandate that pay raises for members of all components of the Army, Navy, Air Force, and Marine Corps during fiscal years 2009 through 2012 must be one-half of one percent higher than the raise calculated under section 1009 of title 37, United States Code, using the level of pay increases in the private sector as measured using the Employment Cost Index.

SUBTITLE B--BONUSES AND SPECIAL AND INCENTIVE PAYS

SECTION 611--EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES FOR RESERVE FORCES

This section would extend the authority for the Selected Reserve reenlistment bonus, the Selected Reserve affiliation or enlistment bonus, special pay for enlisted members assigned to certain high priority units, the Ready Reserve enlistment bonus for persons without prior service, the Ready Reserve enlistment and reenlistment bonus for persons with prior service, and the Selected Reserve enlistment bonus for persons with prior service until December 31, 2009.

SECTION 612--EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES FOR HEALTH CARE PROFESSIONALS

This section would extend the authority for the nurse officer candidate accession program, the accession bonus for registered nurses, the incentive special pay for nurse anesthetists, the special pay for Selected Reserve health care professionals in critically short wartime specialties, the accession bonus for dental officers, the accession bonus for pharmacy officers, the accession bonus for medical officers in critically short wartime specialties, and the accession bonus for dental specialist officers in critically short wartime specialties until December 31, 2009. This section would also extend the authority for repayment of educational loans for certain health professionals who serve in the Selected Reserve until January 1, 2010.

SECTION 613--EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR NUCLEAR OFFICERS

This section would extend the authority for the special pay for nuclear-qualified officers extending a period of active service, nuclear career accession bonus, and the nuclear career annual incentive bonus until December 31, 2009.

SECTION 614--EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES AND SPECIAL PAYS

This section would extend the authority for the aviation officer retention bonus, assignment incentive pay, the reenlistment bonus for active members, the enlistment bonus for active members, the retention bonus for members with critical military skills or assigned to high priority units, the accession bonus for new officers in critical skills, the incentive bonus for conversion to shortage military occupational specialties, the incentive bonus to transfer between armed forces, the accession bonus for officer candidates, and the Army referral bonus until December 31, 2008, except for the incentive bonus to transfer between armed forces, which is extended until December 31, 2010.

SECTION 615--INCREASE IN INCENTIVE SPECIAL PAY AND MULTIYEAR RETENTION BONUS FOR MEDICAL OFFICERS

This section would increase the maximum annual amounts that may be paid to medical officers for incentive special pay from $50,000 to $75,000 and the multiyear retention bonus from $50,000 to $75,000.

SECTION 616--INCREASE IN DENTAL OFFICER ADDITIONAL SPECIAL PAY

This section would increase the maximum annual amounts of additional special pay that may be paid to dental officers with less than three years of service from $4,000 to $10,000 and to dental officers with more than three years of service, but less than 10 years of service, from $6,000 to $12,000.

SECTION 617--DEFINITION OF SEA DUTY FOR CAREER SEA PAY TO INCLUDE MULTI-CREW SHIPS

This section would clarify that members who are assigned to a crew for a multi-crewed class of vessels are entitled to continuous payment of career sea pay.

SECTION 618--REENLISTMENT BONUS FOR MEMBERS OF THE SELECTED RESERVE

This section would clarify that reenlistment bonuses may be paid for a minimum period of three years of obligated service and that $15,000 is the maximum bonus that may be paid for any reenlistment.

SECTION 619--AVAILABILITY OF SELECTED RESERVE ACCESSION BONUS FOR PERSONS WHO PREVIOUSLY SERVED IN THE ARMED FORCES FOR A SHORT PERIOD

This section would authorize payment of a Selected Reserve enlistment bonus to persons who had enlisted previously, but were unable to complete basic training requirements due to circumstances beyond their control and were separated under honorable conditions.

SECTION 620--AVAILABILITY OF NUCLEAR OFFICER CONTINUATION PAY FOR OFFICERS WITH MORE THAN 26 YEARS OF COMMISSIONED SERVICE

This section would extend the eligibility for the nuclear officer continuation pay from 26 to 30 years of commissioned service.

This section would authorize the Secretary of Defense, or the Secretary of Homeland Security, with respect to the Coast Guard when it is not operating as a service in the Navy, to waive the maximum years of service eligibility requirement for a critical skill retention bonus and pay bonuses to members with more than 25 years of service.

SECTION 622--ACCESSION BONUS FOR PARTICIPANTS IN THE ARMED FORCES HEALTH PROFESSIONAL SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM

This section would authorize an accession bonus of not more than $20,000 to be paid to participants in the Armed Forces Health Professional Scholarship and Financial Assistance Program.

SECTION 623--PAYMENT OF ASSIGNMENT INCENTIVE PAY FOR RESERVE MEMBERS SERVING IN COMBAT ZONE FOR MORE THAN 22 MONTHS

This section would authorize the secretaries of the military departments to pay $1,000 each month in assignment incentive pay to reserve members serving in combat zones associated with Operation Enduring Freedom and Operation Iraqi Freedom once the member exceeds 22 cumulative months of service on active duty under either a voluntary mobilization authority, the presidential Selected Reserve callup authority, or the partial mobilization authority. The payments would be authorized during the period extending from January 1, 2005, through the end of the member's service in the combat zone when the member's most recent mobilization to active duty began prior to January 19, 2007. Service under the appropriate authorities would qualify the member for the pay if performed during the period extending from January 1, 2003, through the end of the member's active duty service during the member's most recent mobilization to active duty that began prior to January 19, 2007.

The committee is aware that assignment incentive pay is being paid or has been paid to reserve component members who agreed to deploy with their units to Operation Iraqi Freedom or Operation Enduring Freedom notwithstanding that they would exceed the maximum of 24 months of mobilized service established in Department of Defense policy at the time. The committee is also aware that in the case of the Army, there are soldiers in the same units who would also exceed the 24 month maximum that were not offered the assignment incentive pay solely because the previous mobilization was under a different authority. The committee believes that all these soldiers made an important commitment to the nation that resulted in their units being more cohesive and combat ready because of their presence and that it is a fundamental injustice to reward one group and not the other.

The committee directs the secretaries of the military departments to examine this issue and, if appropriate, disseminate information to the units where members have demonstrated their willingness to deploy to a combat zone during the eligibility period and serve beyond 24 months during the qualification period. The committee strongly encourages the secretaries of the military departments to seek applications from members who believe they would be eligible for the assignment incentive pay and are equally deserving of the pay as those members in their units who are receiving or have received the pay.

SECTION 624--INCREASE IN MAXIMUM MONTHLY RATE OF HARDSHIP DUTY PAY

This section would increase the maximum amount of hardship duty pay that may be paid each month from $750 to $1,500.

SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES

This section would authorize the secretary concerned to provide a $50 stipend to reserve component members when the member participates in an electronic screening to verify contact information and determine individual readiness.

SECTION 632--ALLOWANCE FOR CIVILIAN CLOTHING FOR MEMBERS OF THE ARMED FORCES TRAVELING IN CONNECTION WITH MEDICAL EVACUATION

This section would authorize members to purchase luggage in addition to clothing at government expense when traveling in connection with medical evacuation.

SECTION 633--MOVING EXPENSES FOR JROTC INSTRUCTORS WHO AGREE TO SERVE IN HARD-TO-FILL POSITIONS

This section would authorize the secretary concerned to reimburse educational institutions for moving expenses paid to Junior Reserve Officer Training Corps instructors when the secretary determines the position is hard-to-fill and the instructor agrees to serve in the position for two years.

SECTION 634--TRANSPORTATION OF ADDITIONAL MOTOR VEHICLE OF MEMBERS ON CHANGE OF PERMANENT STATION TO OR FROM NONFOREIGN AREAS OUTSIDE THE CONTINENTAL UNITED STATES

This section would authorize members with at least one family member eligible to drive to ship two privately owned vehicles during permanent change of station moves to nonforeign duty locations located outside the continental United States. Nonforeign duty locations outside the continental United States include Alaska, Hawaii, Puerto Rico, Guam, and other territories and possessions.

This section would authorize the secretary of a military service to reimburse members of the Selected Reserve serving in specialties designated by the Secretary for travel expenses when that travel while performing inactive duty training or unit training assembly duty is outside the commuting limits of the member's station and the training is necessary to maintain mission readiness. This section would also specify that the amount that may be reimbursed for such training may not exceed $300. This section would be effective October 1, 2008, and terminate December 31, 2014.

SUBTITLE D--RETIRED PAY AND SURVIVOR BENEFITS

SECTION 641--DISREGARDING PERIODS OF CONFINEMENT OF MEMBER IN DETERMINING BENEFITS FOR DEPENDENTS WHO ARE VICTIMS OF ABUSE BY THE MEMBER

This section would allow periods of confinement prior to convening authority action to be considered in determining certain benefits for dependents who are victims of abuse by the service member.

SECTION 642--CONTINUATION OF AUTHORITY FOR MEMBERS OF THE ARMED FORCES TO DESIGNATE A RECIPIENT FOR A PORTION OF THE DEATH GRATUITY

This section would extend the authority for members to designate a person to receive up to 50 percent of the death gratuity in 10 percent increments. The authority was established in the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 with an expiration date of September 30, 2007.

SECTION 643--RECOUPMENT OF ANNUITY AMOUNTS PREVIOUSLY PAID, BUT SUBJECT TO OFFSET FOR DEPENDENCY AND INDEMNITY COMPENSATION

This section would specify a series of actions to protect the interests of surviving spouses who are subjected to recoupment of overpayments under the Survivor Benefit Plan resulting from the mandatory offsets associated with payments of Dependency Indemnity Compensation by the Department of Veterans Affairs. These actions include:

(1) A single notice of the net amount to be recouped;

(2) A written explanation of the statutory requirements for recoupment;

(3) A detailed accounting of the calculations used to determine the amount to be recouped; and

(4) Contact information for a person who can provide information and respond to questions regarding the recoupment action.

This section would authorize a survivor indemnity allowance to surviving spouses who are denied the full amount of their annuity under the Survivor Benefit Plan (SBP) because of the offset required as a result of concurrent receipt of Dependency and Indemnity Compensation (DIC) from the Department of Veterans Affairs. This section would authorize such surviving spouses to receive a monthly payment equal to $40 or the amount of the SBP annuity subject to the DIC offset should it be a lesser amount. The authority provided under this section would be effective on October 1, 2008, and would expire on March 1, 2016.

SECTION 645--EXPANSION OF COMBAT-RELATED SPECIAL COMPENSATION ELIGIBILITY FOR CHAPTER 61 MILITARY RETIREES WITH FEWER THAN 20 YEARS OF CREDITABLE SERVICE

This section would authorize disabled military retirees with fewer than 20 years of service to receive payments under the combat-related special compensation program so long as they possess a minimum of 15 years of creditable service and the level of their disability is rated at least 60 percent disabling. This section would also require that the amount of military retired pay received by the member would be reduced by the amount that the member's disability retired pay exceeds the amount of retired pay due to the member based on years of service alone. The authority under this section would be effective on October 1, 2008, and would expire on October 1, 2015.

SECTION 651--ACCESS TO DEFENSE COMMISSARY AND EXCHANGE SYSTEM BY SURVIVING SPOUSE AND DEPENDENTS OF CERTAIN DISABLED VETERANS

This section would require the Secretary of Defense to revise Department of Defense regulations to provide for access to military commissary and exchange stores for surviving spouses and dependents of veterans who were posthumously determined to possess service-connected disabilities rated as 100 percent or total.

SECTION 652--AUTHORITY TO CONTINUE COMMISSARY AND EXCHANGE BENEFITS FOR CERTAIN INVOLUNTARILY SEPARATED MEMBERS OF THE ARMED FORCES

This section would authorize members involuntarily separated from active duty or the Selected Reserve to continue to use commissary and exchange stores for two years after separation. This would expire on December 31, 2012.

SECTION 653--AUTHORIZATION OF INSTALLMENT DEDUCTIONS FROM PAY OF EMPLOYEES OF EXECUTIVE BRANCH INSTRUMENTALITIES TO COLLECT INDEBTEDNESS TO THE UNITED STATES

This section would clarify that executive branch instrumentalities have the same access to procedures for collection of debts from federal civilian employees as do judicial and legislative branch instrumentalities.

SUBTITLE F--CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND BONUS AUTHORITIES

SECTION 661--CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND BONUS AUTHORITIES OF THE UNIFORMED SERVICES

This section would reform and consolidate over 60 special and incentive pays into the following eight categories:

(1) Bonuses for enlisted members;

(2) Bonuses for officers;

(3) Bonuses and incentive pays for nuclear officers;

(4) Bonuses and incentive pays for aviation officers;

(5) Bonuses and incentive pays for officers in health professions;

(6) Hazardous duty pays;

(7) Assignment pays and special duty pays; and

(8) Skill incentive pays and proficiency bonuses.

This section would also retain separate authorities for 15-year career status bonuses, critical skill retention bonuses, and the continuation of combat zone related pays and allowances for members hospitalized as a result combat-related wounds, injuries, or illnesses. The committee believes that reform and consolidation of special and incentive pays will result in a pay system that is easier to understand and less expensive to administer.

SECTION 662--TRANSITIONAL PROVISIONS

This section would require the Secretary of Defense to develop, in coordination with the Secretary of Homeland Security, the Secretary of Health and Human Services, and the Secretary of Commerce, a plan to implement the consolidation of special pays, incentive pays, and bonus authorities specified in section 661 of this Act and to submit the plan to the congressional defense committees within one year of the date of enactment of this Act. This section would also provide for an orderly transfer to the new authorities that would be implemented on a pace set by the Secretary of Defense with full implementation required within 10 years after the date of enactment of this Act.

SUBTITLE G--OTHER MATTERS

SECTION 671--EXPANSION OF EDUCATION LOAN REPAYMENT PROGRAM FOR MEMBERS OF THE SELECTED RESERVE

This section would expand the types of educational loans that may be repaid under the Selected Reserve loan repayment program and would make both officers and enlisted members eligible for loan repayment.

SECTION 672--ENSURING ENTRY INTO UNITED STATES AFTER TIME ABROAD FOR PERMANENT RESIDENT ALIEN MILITARY SPOUSES AND CHILDREN

This section would allow the spouse and children of members of the armed forces stationed abroad, who are Lawful Permanent Residents, readmission without having abandoned status through long absence from the United States.

SECTION 673--OVERSEAS NATURALIZATION FOR MILITARY SPOUSES AND CHILDREN

This section would provide naturalization eligibility to accompanying Lawful Permanent Resident spouses and children of members of armed forces stationed abroad by treating their period of residence abroad as residence within the United States.

TITLE VII--HEALTH CARE PROVISIONS

OVERVIEW

The committee is concerned about the ability of the Defense Health Program to support operational requirements and maintain the accessibility and quality of the health care provided to service members, retirees, and family members. The committee is aware of the fiscal constraints that the Department of Defense (DOD) faces and the resultant challenges providing for military medical readiness, force health protection, and health care services to all other beneficiaries. The committee remains concerned that the Department continues to push forward fee increase proposals that have not been thoughtfully analyzed, and included in the President's budget anticipated savings of $1.9 billion on potential recommendations from the task force on the future of military health care. While the task force is required to provide an interim report on potential fee increases by May 31, 2007, their final report may not be available until later this year. The assumption that the task force will recommend fee increases that have already been included in the President's budget request may taint the independence of the task force and its work. The committee remains concerned that the proposed cut may have a devastating impact on the defense health program and its ability to meet the military medical readiness and force health protection of the troops during a time of war. The committee was pleased that the House Committee on Budget shares its concern regarding the proposed $1.9 billion savings and restored the funds within the Department of Defense top line. The committee believes that a comprehensive approach to sustaining the military health care benefit is required and that changes to the military health care benefit require careful, deliberate consideration with a full accounting of the impact across the board. Therefore, the committee recommends restoring the $1.9 billion in savings to the Defense Health Care Program, and urges the Department to wait until the review of the task force is completed, as well as the Government Accountability Office audit, required by section 713 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), to conduct a thorough, informed review before making further recommendations that are assumed in the President's budget. The committee is well aware of the rising health care costs within the Department, but it also believes that proposed recommendations that directly impact service members, retirees and their families must be done in comprehensive and prudent manner.

As Operation Iraqi Freedom and Operation Enduring Freedom continue, the committee is concerned that the challenges faced by the military health care system continue to grow. The need for mental health providers to provide care and support for deployed and returning service members and their families continues to increase. Identification and treatment of service members with traumatic brain injuries continues to be a priority as greater numbers of service members are exposed to blast injuries in theater. The high deployment frequency of medical personnel is taking a toll on these skilled professionals who are being recruited by the private sector with better pay and an improved quality of life. Military to civilian conversions over the past several years seem to have compounded the problem and reduced access for service members and their families. Further, the proposed reduction in the Navy medical community is in direct contradiction to the ongoing need for medical personnel for deploying Marine units, as well as increased demand to grow the Marine Corps force.

The committee is concerned that the Department does not seem able to address these concerns in a timely manner, and that the impact on the Defense Health Program will have profound consequences to service members and their families. As such, the committee proposes a mental health initiative, as well as a traumatic brain injury initiative to address the concerns that have been raised by service members and their families. The committee also proposes to address the reduction of Navy medical personnel and the proposed military to civilian conversions within other parts of this Act. The committee urges the Department to ensure that the Defense Health Program is fully funded to meet the growing demands placed on the system.

ITEMS OF SPECIAL INTEREST

TRICARE BENEFICIARIES AND EMPLOYER GROUP HEALTH PLANS

Last year, Congress prohibited employers from providing certain financial or other incentives for a retired TRICARE beneficiary not to enroll under an employer-provided group health plan. Concerns were expressed last year that the treatment of cafeteria plans authorized under section 125 (26 U.S.C. 125) of the Internal Revenue Code and non-TRICARE exclusive employer-provided health care incentives could be affected by the prohibition. The committee reiterates that it is not the intention to deny TRICARE eligible employees the opportunity to elect to participate in an employer group health plan in the same manner as other similarly situated employees, and that the provision should not be construed to effect, modify, or terminate the eligibility of a TRICARE eligible employee or spouse for their earned military health care benefit.

Therefore, the committee urges the Secretary of Defense to implement clarifications from the Centers for Medicare and Medicaid Services that certain common employer benefit programs do not constitute improper incentives under the law when setting TRICARE beneficiary policies as mandated in section 707 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364).

JOINT UNIFIED MEDICAL COMMAND STUDIES

The committee is aware that the Department of Defense intends to restructure the governance of the military health system. The committee report (H. Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007 (Report 109-452) directed the Comptroller General to conduct a review of the various studies that the Department and other organizations have undertaken and provide an analysis of the various unified medical command structures under consideration by the Department and outside organizations and submit these findings to the Senate Committee on Armed Services and the House Committee on Armed Services. The committee understands that the Comptroller General's review is ongoing. In addition, section 711 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) established the Department of Defense task force on the future of military health care and required the Secretary of Defense to assess and make recommendations on the appropriate command and control structure within the Department and the military services to manage the military health system. As such, the committee strongly urges that the Secretary defer organizational changes until the Comptroller General can review the assessments and recommendations from the task force.

MILITARY GYNECOLOGICAL CANCER EDUCATION

The committee recognizes that many of the most serious and deadly cancers women face, such as cancers of the female reproductive system are under-diagnosed and treated. The committee believes that education is a vital element in the prevention of disease and therefore directs the Secretary of Defense to establish a replicable education curriculum and produce related educational materials on the signs, symptoms, treatment options, and prevention of gynecological cancers to be utilized by the military services worldwide to help female members of the armed forces in the ongoing battle against gynecological cancers.

MILITARY MENTAL HEALTH INITIATIVE

The committee is aware of the challenges the Department of Defense faces providing mental health programs to combat veterans and their families. To help the Department deal with these challenges, section 723 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) required the Secretary of Defense to create a Department of Defense Task Force on Mental Health. The committee understands that the task force will report its findings by August, 2007. The committee notes the wealth of new concepts and technologies of varying levels of maturity that emerge annually from the nation's academic and medical base. The committee directs the Secretary of Defense to establish a Military Mental Health Initiative to coordinate mental health research and development for the Department. The Initiative would provide the opportunity for researchers to compete for funding on both the basis of scientific merit and the contribution that the studies could make to the identification, diagnosis, and treatment of mental health issues. The committee further directs the Secretary to submit a report on the status of the Initiative to the congressional defense committees within 180 days after passage of this Act.

The committee recommends that the projects to be considered for funding under the Military Mental Health Initiative include, but are not limited to the following:

(1) Expansion of the Soldier Wellness Assessment Pilot Program at Fort Lewis to include service members from the reserve components.

(2) Pilot program using the Soldier Wellness Assessment Pilot Program methodology at an active duty Army installation with at least one deployable brigade combat team.

(3) Study of late-onset post traumatic stress disorder (PTSD) involving a cohort of service members at least two years removed from service in Operation Iraqi Freedom or Operation Enduring Freedom who have not been diagnosed with PTSD to identify the prevalence of undiagnosed PTSD and its impact on their continuing service.

(4) Study of a cohort of female service members returning from Operation Iraqi Freedom or Operation Enduring Freedom to determine the incidence of PTSD and their continuing needs for care; including treatment for the psychological effects of sexual assault.

(5) Study of the feasibility and potential benefits of mandatory one-on-one counseling between service members returning from an overseas operational deployment and a mental health practitioner.

(6) Study on the effect of a parent's, or parents', combat deployment on children to develop a screening system to identify behavioral signals that indicate a child is having trouble coping with the separation.

(7) Inventory and analysis of all outreach programs that promote the availability of mental health services for dependents of service members who have served in a combat theater to identify best practices.

MULTI-CENTER CLINICAL RESEARCH TRIALS FOR THE TREATMENT OF MILITARY BURN VICTIMS

The committee directs the Secretary of Defense to conduct a study on entering into an association with an organization with significant expertise in the treatment of burns for the purpose of organizing, administering, and overseeing the conduct of controlled multi-center evidence-based clinical research trials in burn treatment at qualified independent academic medical organizations. The committee directs the Secretary to submit a report on the findings of this study to the congressional defense committees within 180 days following enactment of this Act.

TRAUMATIC BRAIN INJURY INITIATIVE

The committee is aware that a significant number of combat injured patients evacuated from Iraq and Afghanistan have a traumatic brain injury (TBI). Many of these injuries result from blasts and are not always accompanied by physically observable head trauma. The committee is concerned that service members with undiagnosed and untreated TBI may experience long-term medical effects from the injury. The committee wants to ensure that all service members with a potential TBI receive a timely diagnosis, appropriate treatment, and rehabilitation. Further, the committee is concerned that undiagnosed TBI may compromise operational readiness.

In the committee report (H. Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007, the committee directed the Secretary of Defense to develop a comprehensive and systematic approach for the identification, treatment, disposition, and documentation of TBI, including mild to moderate TBI, for combat and peace time injuries. Further, the committee directed the Secretary to develop a comprehensive approach by May 1, 2007, and to report its actions to the Senate Committee on Armed Services and the House Committee on Armed Services.

The committee believes that the growing number of service members with TBI places more emphasis on the need for coordinated research, diagnosis, and treatment options to provide improved medical care and rehabilitation. The committee recognizes that the military medical system is now at the forefront of managing TBI. The committee directs the Secretary to establish the TBI Research and Treatment Initiative, to provide the opportunity for emerging technologies and concepts to compete for funding on both the basis of their technical merit and the contribution that the advances could, if implemented, make to the treatment and rehabilitation of those with TBI. Further, the Initiative may support the activities of a TBI center of excellence. The committee also directs the Secretary to submit a report on the status of the Initiative to the congressional defense committees within 180 days after passage of this Act.

The committee recommends that the projects to be considered for funding under the TBI Research and Treatment Initiative include, but are not limited to the following:

(1) Chronic epilepsy in severe head injuries program;

(2) Comprehensive neuroscience program; and

(3) Study TBI outcomes at a federal treatment facility with a designated TBI treatment and rehabilitation program that is affiliated with a public university medical school, to include joint residency programs, to identify best practices.

(4) Neuro-protectant medication that can be administered in the field immediately after the injury is sustained.

TRICARE FRAUD STUDY

The committee notes that the budget request for the Department of Defense requested authority to suspend eligibility for health care benefits of a covered beneficiary who commits fraud against the TRICARE program. The committee is aware that currently the only sanctions available to the Department are recovery of erroneous payments and medical claims notification. However, the committee was not provided sufficient information to determine the actual frequency of fraud or its impact on the TRICARE program. The committee directs the Secretary of Defense to conduct a study to determine the prevalence and scope of billing fraud being committed by covered beneficiaries against the TRICARE program and to submit a report on the results of the review to the congressional defense committees within 90 days of enactment of this Act.

LEGISLATIVE PROVISIONS

SECTION 701--EXTENSION OF PROHIBITION ON INCREASES IN CERTAIN HEALTH CARE COSTS FOR MEMBERS OF THE UNIFORMED SERVICES

This section would extend the prohibition establish by the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) on the Department of Defense (DOD) from increasing the premium, deductible and copayment for TRICARE Prime, the charge for inpatient care for TRICARE Standard, and the premium for TRICARE Reserve Select, and TRICARE Standard for members of the Selected Reserve during the period from October 1, 2007, to September 30, 2008. The committee shares the DOD's concern about the rise in the cost of military health care and the potential for the escalating cost to have a negative impact on the ability of the Department to sustain the benefit over the long-term. However, the committee believes that changes to the military health care benefit require careful, deliberate consideration with a full accounting of the impact across the board. The committee makes these recommendations to allow for a period of time to shape a more balanced approach to address the cost of military health care.

SECTION 702--TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS UNDER RETAIL PHARMACY SYSTEM OF PHARMACY BENEFITS PROGRAM

This section would limit the cost-sharing requirements for drugs provided through the TRICARE retail pharmacy program to amounts not more than $3 for generic drugs, $9 for formulary drugs and $22 for non-formulary drugs. The cost sharing schedules established by this section would end September 30, 2008.

SECTION 703--FAIR PRICING UNDER PHARMACY BENEFITS PROGRAM

This section would authorize the Secretary of Defense to exclude pharmaceutical agents from the pharmacy benefits program that are not provided to the Secretary at the same price or lower than the price of the agent under section 8126 of title 38, United States Code.

SECTION 704--PROHIBITION ON CONVERSION OF MILITARY MEDICAL AND DENTAL POSITIONS TO CIVILIAN MEDICAL AND DENTAL POSITIONS

This section would prohibit the secretary of a military department from converting any military medical or dental position to a civilian medical or dental position on or after October 1, 2007. The committee considers a conversion of a military medical position to a civilian position to occur on the effective date of the manning authorization document upon which the position is changed. Further, this section would repeal section 742 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364). Under section 742, secretaries of the military departments were required to certify that conversion of military medical positions to civilian positions did not increase the cost, or erode access to or the quality of military health care. The committee is concerned that conversions of military medical positions to civilian medical positions for fiscal year 2007 took place before the secretaries provided the committee with the required certification.

SECTION 705--ESTABLISHMENT OF NURSE PRACTITIONER PROGRAM

This section would require the Secretary of Defense to establish a graduate education program in advanced practice nursing at the Uniformed Services University of the Health Sciences. The committee recognizes the contribution military nurse practitioners make to the military health system, and establishing a permanent, Department of Defense-wide education program at the University will allow the services to expand their use of nurse practitioners. The committee also recognizes the services' urgent need for additional mental health professionals; therefore, this section would require that the advanced practice nursing program specialties include, at a minimum, family practice and psychiatric or mental health practice. This section would also require that the curriculum be fully eligible to meet credentialing requirements of the military services and of the individual states.

SECTION 706--SERVICES OF MENTAL HEALTH COUNSELORS

This section would allow mental health counselors, without prior physician referral or supervision, to be reimbursed for services provided to TRICARE beneficiaries. This section would also amend section 704 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337) to allow mental health counselors to enter into personal service contracts with the Department of Defense for the purpose of providing mental health services to TRICARE beneficiaries. Further, this section would require that mental health counselors meet the licensure or certification requirements for `health care professional' established by section 1094 of title 10, United States Code.

SECTION 707--EXTENSION OF PILOT PROGRAM FOR HEALTH CARE DELIVERY

This section would extend the pilot program established by the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375) to test initiatives that build cooperative health care arrangements and agreements between military installations and local, regional non-military health care systems. As an installation undergoing profound growth, Fort Drum, New York, was selected as one of two test sites for the pilot program. The committee recommends $0.4 million for the Fort Drum regional health planning organization that has been organized to coordinate the pilot program, as well as to help conduct necessary assessments and/or studies. This section also requires the Secretary of Defense to collaborate with State and local authorities to share personal health information between military and non-military health care systems.

SECTION 708--STIPEND FOR MEMBERS OF RESERVE COMPONENTS FOR HEALTH CARE FOR CERTAIN DEPENDENTS

This section would authorize the Secretary of Defense to pay a stipend for continuing health care coverage to reserve members called to active duty with a dependent possessing a special health care need that would best be met by remaining in the member's civilian health plan.

SECTION 709--JOINT PATHOLOGY CENTER

This section would require the Secretary of Defense to establish a Joint Pathology Center located on the National Naval Medical Center in Bethesda, Maryland. The Center would function as the reference center in pathology for the Department of Defense and the Department of Veterans Affairs, providing services in: diagnostic pathology consultation in medicine, dentistry, and veterinary sciences; pathology education, to include graduate medical education, including residency and fellowship programs, and continuing medical education; and diagnostic pathology research.

SECTION 710--REPORT ON TRAINING IN PRESERVATION OF REMAINS UNDER COMBAT OR COMBAT-RELATED CONDITIONS

This section would require the Secretary of Defense to submit to the Senate Committee on Armed Services and the House Committee on Armed Services a report on the training in preservation of remains in combat or combat-related conditions required by section 567 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) within 180 days of enactment of this Act.

SECTION 711--PRE- AND POST-DEPLOYMENT ASSESSMENTS FOR THE PURPOSE OF DETERMINING THE COGNITIVE FUNCTIONING AND BRAIN HEALTH OF DEPLOYED MEMBERS OF THE ARMED FORCES

This section would require the Secretary of Defense, in collaboration with the secretaries of the military departments, to establish a computer-based program that assesses the cognitive functioning of service members prior to and after returning from deployment in support of the global war on terror, to include Operation Iraqi Freedom and Operation Enduring Freedom. Further, this section would require the Secretary of Defense to submit a report on the implementation of this section to the Senate Committee on Armed Services and House Committee on Armed Services within nine months of enactment of this Act.

SECTION 712--GUARANTEED FUNDING FOR WALTER REED ARMY MEDICAL CENTER

This section would require that the funds available for Walter Reed Army Medical Center would be the same amount expended by the Commander of Walter Reed in fiscal year 2006 until the Secretary of Defense certifies to Congress that the expanded facilities at the National Naval Medical Center, Bethesda, Maryland and DeWitt Army Community Hospital, Fort Belvoir, Virginia, have sufficient staff, equipment, and capacity to provide at least the same level of care provided at Walter Reed during fiscal year 2006.

ITEMS OF SPECIAL INTEREST

ANALYSIS OF CONTRACTOR PAYMENT WITHHOLDING

The committee is aware that the Secretary of Defense will be required to withhold three percent of certain payments to contractors, effective January 1, 2011, in accordance with the requirements of section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 (Public Law 109-222). The committee is concerned that there may be significant costs associated with the management and implementation of such a withholding system, as well as potential cost and performance impacts for contractors. Therefore, the committee directs the Secretary of Defense to assess the impacts of compliance with section 511 and submit a report containing the assessment of this impact to the Senate Committee on Armed Services and the House Committee on Armed Services by April 1, 2008. Such an assessment should include, but is not limited to, the cost of modifications to defense financial accounting systems, additional personnel costs, and anticipated consequences for defense contractors in terms of performance, subcontractor management, and cost escalation.

CONTRACTING IN IRAQ AND AFGHANISTAN

The committee remains concerned about the level of oversight for contracting in Iraq and Afghanistan. These countries present uniquely complex challenges for contracting and contract oversight, but U.S. efforts in these countries will continue to require significant contractor support. The committee believes that government responsibilities for a range of issues involving contracting in Iraq and Afghanistan are unclear. This lack of clarity includes, among other things, oversight of private security contractors carrying weapons. Most private security contractors work on contracts let by either the Department of State or the United States Agency for International Development, however, they operate in the middle of a military theater of operations and their actions reflect strongly on the image of the U.S. Government. The extent to which military commanders have, and are able to exercise responsibility over, private security contractors is unclear, especially as it relates to potential violations of law. The committee believes that clarification of roles and responsibilities for contracting in Iraq and Afghanistan and increased oversight will enhance the effectiveness of U.S. Government efforts in both countries. Accordingly, the committee has included legislative provisions in this title to accomplish both goals, and to address instances where contract abuses occur.

DEPARTMENT OF THE NAVY MILITARY DEPUTY FOR ACQUISITION

The committee is extremely concerned by recent cost, schedule, and performance issues with acquisition programs managed by the Department of the Navy such as, the Expeditionary Fighting Vehicle, the VH-71 helicopter, the Littoral Combat Ship, and the Extended Range Guided Munition and notes that the Secretary of the Navy has not designated a military deputy in the grade of vice admiral to aid in the acquisition oversight role alongside the Assistant Secretary of the Navy for Research, Development and Acquisition (ASN(RDA)). The committee commends the Secretary of the Air Force and the Secretary of the Army for recognizing the requirement and designating an officer in the grade of lieutenant general to serve as the military deputy to the senior civilian acquisition executive within their respective Departments.

The committee believes that a military deputy for acquisition within the Department of the Navy could provide sound expert advice and guidance to the ASN(RDA) on acquisition and procurement policies, as well as a valuable linkage to the systems commands that report independently to the Chief of Naval Operations. The committee also believes that a military deputy for acquisition could reinforce with all stakeholders the need for fiscal, requirements, and leadership stability.

The committee directs the Secretary of Defense to submit a report to the congressional defense committees by September 1, 2007, which shall address the need, or lack thereof, for a military deputy to the ASN(RDA) in the grade of vice admiral. The report shall provide a detailed justification, including the perceived benefits and value added contributions provided by the military acquisition deputies of the Air Force and Army, and discuss the extent to which such benefits and contributions could be replicated within the Department of the Navy.

DOMESTIC SOURCING FOR SHIP COMPONENTS

The committee remains concerned about the shipbuilding industrial base and its ability to support the Navy's long-term shipbuilding plan in future years. The committee notes that while the law requiring the domestic construction of ship hulls and superstructures (10 U.S.C. 7309) is both stringent and strictly enforced, an increasing share of the ship construction budget is actually expended on combat systems for naval ships. As such, a growing percentage of naval ship construction components are now eligible for production in overseas facilities. The committee urges the Navy to consider the domestic industrial base for all significant components of ship construction when formulating shipbuilding programs and its long-term shipbuilding plan. The committee expects that the Navy's policies relating to the domestic production of critical ship capabilities will be kept consistent with industry trends.

DOMESTIC STEEL PRODUCTION

The committee is aware that the United States' domestic steel production capability is an important element in the defense industrial base, and that the Department of Defense relies upon the domestic steel industry for many critical capabilities, including jet aircraft, submarines and Humvees. The committee is also aware that the industry is under intense competitive pressure with increasing consolidation of domestic steel producers. As a result of this consolidation, foreign owned companies now control more than a quarter of the annual North American industry output. This is an historic change for an industry that previously was almost exclusively domestically owned. Section 843 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), codified in section 187, title 10, United States Code, established a Strategic Materials Protection Board whose mission is, in part, to determine the need to provide a long term domestic supply of materials designated as critical to national security to ensure that national defense needs are met. The committee urges the Department and the Board to consider the critical contributions to national security made by the domestic steel industry, and to examine whether past and future consolidation of the domestic industry has led the United States' domestic steel production capacity to atrophy. The committee encourages the Department and the Board to work with other government agencies to ensure that the United States has access to a long term domestic supply of steel.

HIGH PERFORMANCE MAGNETS

The committee is aware that high-performance magnets are critical components in numerous Department of Defense weapon systems including Aegis radars, M1A1 tanks, unmanned aerial vehicles, and the joint direct attack munition. The committee is also aware that the industry is under intense competitive pressure with less than five remaining domestic manufacturers. As a result, the committee is concerned about the continued availability of these critical materials from domestic sources. Section 843 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) requires the Secretary of Defense to establish a Strategic Materials Protection Board to recommend a strategy to the President that ensures the domestic availability of materials designated as critical to national security. The committee urges the Department and the Board to consider the critical contributions to national security made by the domestic high-performance magnet industry, especially during consideration of any past or future domestic non-availability determinations, and to ensure the continued availability of these items from domestic sources. The committee encourages the Department and the Board to consider protections for certain classes of high-performance magnets, such as rare-earths and ferrites, which are commonly used in Department of Defense weapons systems, but are not currently protected in statute.

The committee is concerned that the Department of Defense's (DOD) budgeting and acquisition processes continue to struggle to keep pace with the innovative cycle of information technology (IT). The committee believes that the commercial sector leads the government in the development of new IT capabilities and is better suited to responsively and effectively incorporate the rapid technological advances associated with such systems. While the Department is working to rapidly acquire new technology and to facilitate a rapid transfer of technology from development programs to procurement, the committee believes that the overly decentralized nature of DOD's processes and organizations for identifying and acquiring IT have caused several problems. First, decentralization has inhibited cooperation across components regarding coordination and requirements and has led to duplicative efforts and inefficient spending. Second, decentralization has created difficulty for non-traditional defense companies seeking to enter into the defense market, as an overall lack of clearly defined standards, established requirements, and consistent policy goals have created confusion and acted as a disincentive to participation.

The committee remains concerned that DOD's inability to effectively incorporate and utilize commercially developed IT represents a significant shortcoming in DOD's ability to provide for the nation's security. Because DOD's IT investment represents a significant portion of the overall defense budget, the committee seeks to maximize the returns associated with such investment and to ensure that the Department can provide the best, most modern IT systems to meet DOD's mission requirements.

Therefore, the committee directs the Secretary of Defense to submit a roadmap for restructuring the Department in order to optimize its ability to identify, assess, stimulate investment in, and rapidly acquire and coordinate the use of commercial IT. The committee directs the Secretary to provide the roadmap to the congressional defense committees by March 1, 2008. The report shall:

(1) Identify current organizations, mechanisms, and processes for identifying promising IT systems and assessing them against validated requirements from the services, defense agencies, and combatant commanders, including information flows and possible gaps or overlaps in responsibility;

(2) Identify a single position or organization that will provide strategic direction and be responsible as the lead IT advocate within the Department, and include a detailed explanation of the authorities granted to this position or organization for carrying out such responsibilities;

(3) Recommend changes to existing organizations, statutes, mechanisms, or processes to increase efficiency and provide for commercial IT solutions to be acquired and applied to warfighter requirements in 24 months or less; and

(4) Identify funding requirements in order to carry out the responsibilities, as recommended.

OTHER TRANSACTION AUTHORITY FOR IT PROGRAMS

The committee understands that acquisition system processes and the issue of intellectual property rights (IPR) protection are often cited as barriers to contractual relationships between the Department of Defense (DOD) and commercial information technology (IT) firms. The committee notes, however, that the Department may use `Other Transactions Authority' (OTA) to enter into contracts for prototypes and that such authority allows the Department to waive normal Federal Acquisition Regulation contracting rules, as necessary.

The committee directs the Undersecretary of Defense for Acquisition, Technology, and Logistics to assess the extent to which OTAs are being utilized by the Department to facilitate the development and acquisition of IT systems. The report shall be submitted to the congressional defense committees by March 1, 2008, and include:

(1) A determination of the extent of OTA usage across all DOD IT-related programs;

(2) An assessment of the effectiveness of utilizing OTAs in IT programs in terms of cost, schedule, and overall value to the government;

(3) An assessment of the effectiveness of utilizing OTAs in IT programs in terms of the recruitment of non-traditional defense companies;

(4) An assessment of DOD training and certification requirements for program managers and other members of the acquisition community in the use and application of OTAs; and

(5) An identification of and recommendation about any limitations or modifications to OTAs or related acquisition processes that should be considered prior to further use of such authority.

PROCUREMENT TECHNICAL ASSISTANCE PROGRAM

The committee recognizes the importance of the Procurement Technical Assistance Program (PTAP), a nationwide network of community-based, dedicated procurement professionals who provide critical assistance to small businesses seeking to participate in Department of Defense and other federal agency procurement contracts. The program is authorized under section 2412 of title 10, United States Code. The PTAP helps generate new procurement suppliers for the Department, resulting in a stronger industrial base, greater competition, and higher quality goods at lower cost for the taxpayer. The committee is concerned that the budget request for the PTAP has been insufficient to fund the needs of the many state and regional centers carrying out the program. The committee urges the Department to increase the PTAP annual budget request to a level sufficient to fully fund the operations of all state and regional centers.

REPORT ON THE USE OF SIMPLIFIED ACQUISITION PROCEDURES FOR CERTAIN COMMERCIAL ITEMS

In section 814 of this Act, the committee included a provision that would extend the authority provided in section 4202(e) of the Clinger Cohen Act of 1996 (Public Law 104-106) for an two additional years until January 1, 2010. Section 4202(e) provided authority to use simplified acquisition procedures for the purchase of property or services that are commercial items of no more than $5.0 million in value. The committee notes that this authority was originally provided for a limited time in order to test the ability of these simplified procedures to increase efficiency in government contracting. However, the Government Accountability Office has reported on two occasions that it is unable to evaluate the results of this test program due to insufficient and unreliable data on the use of this authority in contracting. The committee directs the Under Secretary of Defense for Acquisition, Technology, and Logistics to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services by March 1, 2008, on the use in Department of Defense contracting of the simplified acquisition procedures provided in section 4202 of the Clinger Cohen Act of 1996 (Public Law 104-106), and to include in the report summary data on the use of this authority, specific examples where the authority has been used, and an evaluation of how this authority should be limited or extended after January 1, 2010.

RIGHTS TO PROGRAMMATIC DATA

The committee notes with concern anecdotal reports that major defense acquisition programs have been forced to seek contractual remedies to ensure that the Department of Defense obtains design, test, cost, or other programmatic data which would otherwise be withheld due to contractor claims that such data is proprietary or is not specifically listed as a deliverable under the terms of the contract. The committee believes strongly that the Department of Defense should not allow the government's rights to taxpayer-funded data to be relinquished due to lack of proper planning during contract negotiations. As a general policy, the United States taxpayer should not have to pay twice for the same product; rather, having paid to develop and test a product, the government should have rights to design, test, and cost data for any governmental purpose. At the same time, the committee acknowledges the importance of preserving individual and corporate intellectual property rights for the purposes of fostering innovation, which is the lifeblood of the United States economy.

The committee directs the Under Secretary of Defense for Acquisition, Technology, and Logistics, in coordination with the Service Acquisition Executives and Directors of the Defense Agencies, to analyze contracting actions taken between October 1, 2004, and September 30, 2007, to identify the number of times the government was forced to seek a contractual remedy to obtain design, test, cost or other programmatic data for a major defense acquisition program, as defined by section 2430 of title 10, United States Code, after the award of the original contract. Further, the committee directs the Secretary to determine whether there are sufficient occurrences of such actions to suggest that Department of Defense contracting officers should receive specialized training in the negotiation of intellectual property rights and contractual deliverables. Finally, the committee directs that the Secretary transmit his findings, along with a planned course of action, to the Committee on Armed Services of the Senate and Committee on Armed Services of the House of Representatives, no later than March 1, 2008.

SELECTED ACQUISITION REPORTS

The committee notes that the Selected Acquisition Report (SAR) provides an essential oversight tool for Major Defense Acquisition Programs (MDAPs) for both the Department of Defense and for Congress. Section 803 of the National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) required the Under Secretary of Defense for Acquisition, Technology, and Logistics to conduct a study on possible revisions to the SAR, which would allow the Department to more effectively use the SAR for oversight activities and would potentially increase consistency among DOD sources of program information. This report has yet to be submitted. The committee is also aware that the Department is piloting concepts such as time certain delivery, capital accounts, and other new approaches to acquisition, which will change the way that MDAPs are evaluated and overseen within the Department. The committee believes that the SAR should be the basis for a common body of knowledge about the progress of MDAPs, and therefore, that it is critical that the SAR include and accurately reflect the critical information on which programs are judged and evaluated within the Department. In order to accurately assess potential new approaches to acquisition, Congress will need to have access to new measures of program progress, and to traditional measures that have been included in previous SARs. The committee expects the report, when submitted, to include recommendations on additions to the SAR necessary to evaluate new approaches to acquisition being piloted within the Department. The committee notes that it will be difficult for the committee to evaluate, and potentially provide support for, new approaches to acquisition without this information.

SMALL BUSINESS CONTRACTING

The committee is aware that the Department of Defense (DOD) regularly has achieved the goal of awarding prime contracts with a total value not less than 5.8 percent of the value of all DOD contracts to small disadvantaged businesses. However, the committee is disappointed that the Department often has not achieved the related goal of awarding subcontracts of not less than 5 percent of contract value to these businesses. The committee is also aware that continuing difficulties exist in verifying the accuracy of contract data supporting these findings. Furthermore, the committee notes that these goals should not be interpreted as ceilings for the use of small disadvantaged businesses. The committee encourages the Department to examine areas of contracting where the utilization of small disadvantaged businesses is not meeting these goals and adopt policies and procedures designed to increase utilization in those areas including the use of price evaluation adjustments if appropriate.

STRATEGIC MATERIALS PROTECTION BOARD

Section 843 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), codified in section 187, title 10, United States Code, established a Strategic Materials Protection Board whose mission is, in part, to determine the need to provide a long term domestic supply of materials designated as critical to national security to ensure that national defense needs are met. As the Board organizes and begins its deliberations, the committee encourages the Board to focus on the availability and national security need for materials rather than focusing on the health of certain industry sectors. In this manner, the Board will meet Congressional intent and will be less likely to overlook a dwindling domestic capability to supply a material that may be critical to national security, but which may represent a small portion of a particular industrial sector's supply chain.

LEGISLATIVE PROVISIONS

SUBTITLE A--ACQUISITION POLICY AND MANAGEMENT

SECTION 801--DEFINITION OF COMMERCIAL SERVICES

This section would require the Administrator of the Office of Federal Procurement Policy to revise the Federal Acquisition Regulation (FAR) to clarify the definition of commercial services. The revision would define commercial services in the FAR exactly as they are defined in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403 et. seq.). This section would also require the Administrator of the Office of Federal Procurement Policy to identify procedures for the acquisition of non-commercial services of a type similar to commercial services. The Administrator would choose procedures after determining those that are in the best interest of the U.S. Government.

SECTION 802--ACQUISITION WORKFORCE PROVISIONS

This section would repeal subparagraph (H) of section 37 (h)(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 403 et. seq.), thereby making permanent the acquisition workforce training fund. The fund supports the training of acquisition personnel of the federal government and is financed by contract fees. The fund has proven to be an efficient and effective mechanism of providing for the training of the acquisition workforce, which will be a long-term requirement of the federal government.

This section would also require the Secretary of Defense to include a section on the acquisition workforce in the next Department of Defense strategic human capital plan required by section 1122 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163). The section of the plan relating to the acquisition workforce would identify the budgets programmed in the Future Years Defense Program for training of the acquisition workforce; an assessment of whether such funds are adequate; and measures to protect such funds from diversion to other uses. The plan would also identify the requirement, if any, to change the skill mix in the acquisition workforce, and to adopt incentives to recruit and retain high quality personnel.

SECTION 803--GUIDANCE ON DEFENSE PROCUREMENTS MADE THROUGH CONTRACTS OF OTHER AGENCIES

This section would require the Under Secretary of Defense for Acquisition, Technology, and Logistics to update guidance issued to the Department of Defense regarding interagency contracting. The updated guidance would provide that:

(1) Items, which are unique to the Department, should not be acquired through contracts of other agencies;

(2) Program managers or other acquisition officials considering the use of a contract of a non-defense agency should first determine, through market research and by other means, that no identical or substantially similar article is currently being procured by the Department; and

(3) DOD program managers or other acquisition officials must communicate to the non-defense agency the appropriations and procurement requirements applicable to the procurement.

SECTION 804--PROHIBITION ON PROCUREMENT FROM BENEFICIARIES OF FOREIGN SUBSIDIES

This section would prohibit the Secretary of Defense from entering into a contract with a foreign person (including a joint venture, cooperative organization, partnership or contracting team), who has received a subsidy from the government of a foreign country that is a member of the World Trade Organization, if the United States has requested a consultation with that foreign country on the basis that the subsidy is prohibited under the Agreement on Subsidies and Countervailing Measures.

SECTION 805--PROHIBITION ON PROCUREMENT FROM COMPANIES IN VIOLATION OF THE IRAN AND SYRIA NONPROLIFERATION ACT

This section would prohibit the use of funds for the procurement of goods or services from a source subject to sanctions for violations of the Iran and Syria Nonproliferation Act (Public Law 106-178) or from any source that is owned or controlled by a sanctioned entity. This section would apply to prime contracts and subcontracts at any tier. The restriction can be waived if the Secretary of Defense determines there is a compelling reason to contract with such a source and no reasonably equivalent products or services are available from a non-sanctioned source.

SECTION 806--LEAD SYSTEM INTEGRATORS

This section would prohibit the Department of Defense from awarding new contracts for lead systems integrator functions, effective October 1, 2011. This section would also require the Secretary of Defense to submit a report to the congressional defense committees by October 1, 2008, which would include a plan to adjust the acquisition workforce to identify positions and skills that are inherently governmental in nature; identify acquisition workforce skill gaps; create a plan for closing such skill gaps; develop a plan for matching acquisition personnel to programs based on program risk; and identify authorities that may be required on an interim basis until a sufficient number of qualified government personnel are available to perform inherently governmental functions. This section would allow the Department of Defense to continue to award contracts for acquisition support services, if the contractor does not perform inherently governmental functions or subcontract to an entity owned in whole or in part by the contractor. Finally, the section defines the terms `lead systems integrator' and `major system.'

This section would amend section 2323 of title 10, United States Code, to extend the contract goals for small disadvantaged businesses and certain institutions of higher education to include Native Hawaiian-serving institutions and Alaska native-serving institutions.

SECTION 808--REINVESTMENT IN DOMESTIC SOURCES OF STRATEGIC MATERIALS

This section would require that the Under Secretary of Defense for Acquisition, Technology and Logistics issue guidance requiring that all Department of Defense solicitations for major systems that could contain strategic materials clearly specify that an evaluation criteria for such proposals will be the extent to which suppliers of strategic materials demonstrate a record of sustained reinvestment in domestic production of such material. This section would require that this evaluation criteria be incorporated by reference in solicitations at any contractual tier.

This section would also require that the Strategic Materials Protection Board, established under section 187 of title 10, United States Code, report annually on the use of this evaluation criteria and the long-term viability of suppliers of strategic materials.

SECTION 809--CLARIFICATION OF THE PROTECTION OF STRATEGIC MATERIALS CRITICAL TO NATIONAL SECURITY

This section would amend section 2533b of title 10, United States Code, which relates to restrictions on the procurement of specialty metals, to define the term `required form' in that section as mill products such as slab, plate and sheet in the required form necessary. This section would also clarify the definition of `commercial item' used in section 2533b of title 10, United States Code to include commercial off the shelf items. This section would require that any domestic non-determinations made between December 6, 2006 and the date 60 days after the date of enactment of this act shall comply with this section.

SECTION 810--DEBARMENT OF CONTRACTORS CONVICTED OF CRIMINAL VIOLATIONS OF THE ARMS EXPORT CONTROL ACT

This section would require the Secretary of Defense to debar any contractor who has been convicted of a criminal violation of the Arms Export Control Act (22 USC 2751 et seq.) for a period not to exceed 5 years. This section would allow the Secretary to determine that the restriction in this section does not apply if there is a compelling reason to use the contractor concerned. This section would also require the Administrator of the General Services Administration to make any notice of debarment available for public inspection.

SUBTITLE B--AMENDMENTS TO GENERAL CONTRACTING AUTHORITIES, PROCEDURES, AND LIMITATIONS

SECTION 811--CHANGE TO THE TRUTH IN NEGOTIATIONS ACT EXCEPTION FOR THE ACQUISITION OF A COMMERCIAL ITEM

This section would amend section 2306 a of title 10, United States Code, to require the submission of cost or pricing data under the Truth in Negotiations Act (10 U.S.C. 2306a) for sole-source contracts for commercial items if the contracting officer is otherwise unable to locate sufficient sales data to determine that a price is fair and reasonable.

SECTION 812--CLARIFICATION OF SUBMISSION OF COST OR PRICING DATA ON NONCOMMERCIAL MODIFICATIONS OF COMMERCIAL ITEMS

This section would amend section 2306a of title 10, United States Code, to align two thresholds under the Truth in Negotiations Act (10 U.S.C. 2306a). The Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375) required that procurements involving a commercial item with noncommercial modifications totaling more than $0.5 million comply with the requirements for submission of cost or pricing data under the Truth in Negotiations Act (10 U.S.C. 2306a). In addition, it required that procurements involving a commercial item with noncommercial modifications totaling more than five percent of the total value of the item require the submission of cost or pricing data. The thresholds in the Truth in Negotiations Act (10 U.S.C. 2306a) are adjusted for inflation, but the requirement relating to noncommercial modifications of commercial items is not adjusted to the same level as other thresholds in the Act due to its later enactment. This section would align the threshold for noncommercial modifications of commercial items with the other thresholds, including adjustments for inflation. It would also clarify that the calculation of whether noncommercial modifications to a commercial item exceed five percent is made at contract award.

This section would require the Under Secretary of Defense for Acquisition, Technology, and Logistics to develop and implement a plan to restrict the use of government-unique contract clauses on commercial contracts to those specifically required in law or regulation, or those which are specifically relevant to the contract in question. The committee notes that the Federal Acquisition Streamlining Act of 1994 (Public Law 103-355) limited the number of government-unique contract clauses on commercial contracts. Since the passage of that Act, however, the number of government-unique contract clauses has grown, and policy decisions have been made to include contract clauses in all Department of Defense (DOD) contracts that are not required in law or regulation. The committee expects that the plan developed under this section would allow the inclusion of contract clauses in commercial contracts only when their inclusion in the contract is relevant and necessary to that particular contract, and are not included on a blanket basis for all contracts unless so required by law or regulation. The committee notes that contracting officers have means other than contract clauses to ensure that commercial items provided to the Department comply with all relevant DOD policies.

SECTION 814--EXTENSION OF AUTHORITY FOR USE OF SIMPLIFIED ACQUISITION PROCEDURES FOR CERTAIN COMMERCIAL ITEMS

This section would amend section 4202(e) of the Clinger Cohen Act of 1996 (Public Law 104-106) to extend the authority to use simplified acquisition procedures for the purchase of property or services that are commercial items of no more than $5.0 million in value. This section would extend the authority for two additional years until January 1, 2010.

This section would amend section 1413(b) of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136) to extend the authority provided to fill shortage category positions in the acquisition workforce for an additional five years, until September 30, 2012.

SECTION 816--EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE PROJECTS

This section would extend the time frame in which the Secretary of Defense and the Secretary of each military department may enter into `Other Transactions' in carrying out certain prototype R&D projects. The authority under this section is extended until September 30, 2013.

SECTION 817--CLARIFICATION OF LIMITED ACQUISITION AUTHORITY FOR SPECIAL OPERATIONS COMMAND

This section would clarify the authorities available to U.S. Special Operations Command by codifying the position of acquisition executive and senior procurement executive, respectively. This section would allow for the designation of the same individual to serve in both positions.

SECTION 818--EXEMPTION OF SPECIAL OPERATIONS COMMAND FROM CERTAIN REQUIREMENTS FOR CONTRACTS RELATING TO VESSELS, AIRCRAFT, AND COMBAT VEHICLES

This section amends current law and would exempt U.S. Special Operations Command from leasing limitations as required in section 2401 of title 10, United States Code. This section would authorize the Commander, U.S. Special Operations Command, to enter into lease agreements with terms up to five years in length if the full projected cost of such a lease is available and obligated prior to the date of the award of the contract.

This section would amend section 167a of title 10, United States Code, to allow the Commander of the U.S. Joint Forces Command (JFCOM) to provide funding for the maintenance of items procured under the limited acquisition authority provided to JFCOM. The committee notes that the maintenance and sustainment of military equipment is primarily the responsibility of the military services, and that JFCOM is neither designed nor funded to perform this task. However, the committee is aware that items procured under the limited acquisition authority provided to JFCOM may not immediately be supported by a military service. The committee expects that JFCOM will exercise the authority provided in this section only to the extent that it has the capacity to do so effectively and efficiently, and for a period of no more than two years for any individual system. The committee is also concerned that use of this authority could divert resources from other high priority tasks at JFCOM. Accordingly, this section would require that funding allocated under this authority must be authorized and appropriated specifically for this purpose.

SECTION 820--MARKET RESEARCH

This section would amend section 2377 of title 10 United States Code, to clarify requirements relating to market research for procurements in excess of the simplified acquisition threshold and require the use of an appropriately tailored search engine to identify capabilities available in the commercial market place. This section would also require that the Under Secretary of Defense for Acquisition, Technology, and Logistics evaluate options for preference for contractors that maximize the use of capabilities in the commercial market place.

SUBTITLE C--ACCOUNTABILITY IN CONTRACTING

SECTION 821--LIMITATION ON LENGTH OF NONCOMPETITIVE CONTRACTS

This section would require a revision of the Federal Acquisition Regulation, within one year following the date of enactment, in order to limit the period of performance on certain contracts. This section would apply only to contracts valued at more than $1.0 million that, due to urgent and compelling need, are awarded using procedures other than full and open competition. This section would also limit the contract period to the minimum period necessary to meet the urgent and compelling requirement and to enter into a follow-on contract through the use of competitive procedures. In general, this section limits the contract period to not more than one year. The contract period limitation can be waived by the head of the executive agency or, in the case of the Department of Defense, the secretary of a military department, the head of a defense agency, or the Under Secretary of Defense for Acquisition, Technology, and Logistics, upon a determination that the Government would be seriously injured by the limitation on the contract period.

The committee acknowledges that there may be circumstances, particularly during a time of war, during which the Department may require the use of noncompetitive contracts on the basis of urgent and compelling need. The committee believes that, in most circumstances, it should be possible to negotiate follow-on contracts using competitive procedures within a one-year period. The committee provides a waiver to this limitation in recognition of the fact that, in some cases, it may be possible that the limitation on the contract period would result in injury to the Government. The committee has not limited the delegation of this waiver authority, but expects that it will be assigned at a level appropriate for making a determination on the possibility of serious injury occurring due to the limitation of the contract period.

SECTION 822--MAXIMIZING FIXED-PRICE PROCUREMENT CONTRACTS

This section would require each executive agency that awarded contracts in a total amount of $1.0 billion or more during the previous fiscal year to develop and implement a plan to maximize, where appropriate, the use of fixed-price type contracts for the procurement of goods and services, including a single plan for the Department of Defense. All plans must contain measurable goals and be submitted to Congress and the Comptroller General within one year. This section would also require the Comptroller General to review the agency plans and submit a report to Congress within six months of receiving the plans.

The committee believes that fixed-price type contracts are appropriately used when the risk involved can be predicted with an acceptable degree of certainty. The committee also believes that, in the case of complex contract requirements, particularly those unique to the government, cost-reimbursement contracts can be fully appropriate. This is especially true for complex research and development contracts, when performance uncertainties or the likelihood of changes makes it difficult to estimate performance costs in advance. The committee recommends the Under Secretary of Defense for Acquisition, Technology, and Logistics evaluate methods to reduce risk to the Government in procurement contracts and, as a result, appropriately maximize the use of fixed-price type contracts for procurement.

This section would require the head of an executive agency to make certain justification and approval documents relating to the use of noncompetitive procedures in contracting available on the website of the agency and through the Federal Procurement Data System within 14 days of contract award. In the case of noncompetitive contracts awarded on the basis of urgent and compelling needs, the documents would have to be posted within 30 days. The Competition in Contracting Act (Public Law 98-369) already requires that such justification and approval documents be made available for inspection by the public, subject to the exemptions from public disclosure provided in the Freedom of Information Act (5 U.S.C. 552).

SECTION 824--DISCLOSURE OF GOVERNMENT CONTRACTOR AUDIT FINDINGS

This section would require the head of each federal agency or department, in the case of the Department of Defense, the Under Secretary of Defense for Acquisition, Technology and Logistics, to submit quarterly reports to Congress on completed audits of contractors performed by the agency or department. Such reports would describe contractor costs in excess of $10.0 million that a completed audit identified as unjustified, unsupported, questioned, or unreasonable. This section would also require such reports to list completed audits identifying material performance deficiencies of a contractor or a contractor business system.

This section would also require the head of each federal agency or department to provide, within 14 days after a request in writing by the chairman or ranking member of the House Committee on Oversight and Government Reform, the Senate Committee on Homeland Security and Governmental Affairs, the Senate Committee on Appropriations and the House Committee on Appropriations, and in the case of audits performed by the Department of Defense or the Department of Energy, the Senate Committee on Armed Services and the House Committee on Armed Services, and the committees of primary jurisdiction, a full and unredacted copy of any completed audit referenced in a quarterly report. This section would require such a copy to identify information exempt from public disclosure under the Freedom of Information Act (5 U.S.C. 552).

The committee does not intend this section to alter current procedures, formats, or findings of completed audits. The committee seeks to create a mechanism to make Congress aware of major audit findings, while also seeking to minimize the administrative burden of the requirement. In particular, this section requires only the transmission of audits that have been completed, and does not extend to interim audit findings. Also, the committee expects that the lists of audits will focus on those audits which specifically evaluate the legitimacy of contractor cost claims and contract performance evaluations. The committee expects that this will consist of completed incurred-cost audits and audits of policies, procedures, and internal controls relative to accounting and management systems. Such a report should only include completed audits that document material findings of noncompliance with disclosed or established practices, cost accounting standards, or the Federal Acquisition Regulation, or material performance deficiencies.

The committee notes that the threshold for reporting audit findings relating to contractor costs was established to ensure that issues of significance and material importance would be brought to the attention of Congress. The committee expects that agency heads will not modify or subdivide contracts or task orders in order to remain below the threshold of this provision, and expects that audit agencies will continue to review contracts according to the audit procedures established by the Comptroller General.

SECTION 825--STUDY OF ACQUISITION WORKFORCE

This section would require the Administrator of the Office of Federal Procurement Policy to conduct a study of the composition, scope, and functions of the government-wide acquisition workforce and develop a comprehensive definition of, and method of measuring the size of, such workforce.

This section would also require the Administrator for Federal Procurement Policy to submit a report on the results of the study, along with findings and recommendations, to the relevant congressional committees, no later than one year after the date of enactment of this Act.

SECTION 826--REPORT TO CONGRESS

This section would require the Director of the Office of Government Ethics to submit a report to Congress 180 days after the enactment of this Act that contains the Director's recommendation on whether federally funded research and development centers and contractors who advise the government on procurement policy should comply with the personal financial interest requirements that apply to federal employees.

SUBTITLE D--CONTRACTOR PROVISION

SECTION 831--MEMORANDUM OF UNDERSTANDING ON MATTERS RELATING TO CONTRACTING

This section would require that the Secretary of Defense, the Secretary of State, and the Administrator of the United States Agency for International Development (USAID) sign a memorandum of understanding (MOU) regarding matters relating to contracting for contracts in Iraq or Afghanistan. The MOU would clarify the roles and responsibilities of the two departments and USAID in managing and overseeing contracts including tracking and overseeing contractor personnel and maintaining a common database on such contracts. The MOU would assign responsibility for oversight of contractors carrying weapons and the collection and referral of any information relating to offenses under the Uniform Code of Military Justice (Chapter 47 of title 10, United States Code) and the Military Extraterritorial Jurisdiction Act (Chapter 212 of title 18, United States Code). This section would require the submission of the MOU to the relevant committees of Congress. This section would also prohibit the award of any new contracts in Iraq and Afghanistan after January 1, 2008, until the MOU is signed and the Department or agency concerned has initiated use of the common database unless the President waives the restriction.

SECTION 832--COMPTROLLER GENERAL REVIEWS AND REPORTS ON CONTRACTING IN IRAQ AND AFGHANISTAN

This section would require that the Comptroller General review contracts in Iraq and Afghanistan every six months, starting on March 1, 2008, and continuing through March 1, 2010, and report on the review to the relevant committees of Congress. The report would include information on:

(1) The total number of contracts awarded during the reporting period;

(2) The total number of active contracts;

(3) The total value of all contracts awarded during the reporting period;

(4) The total value of active contracts;

(5) The total number of contractor personnel;

(6) The total number of contractor personnel providing security;

(7) The categories of activities undertaken;

(8) The extent to which such contracts have used competitive procedures;

(9) The extent to which such contracts achieved their requirements;

(10) The effect of costs for security on such contracts and the effects of contracting for security rather than using government provided security; and

(11) Any information on contracts that raise issues of significant concern.

This section would also require that the Secretary of Defense and the Secretary of State provide the Comptroller General with full access to information on contracts in Iraq and Afghanistan.

SECTION 833--DEFINITIONS

This section would define three terms for purposes of this subtitle. The term `matters relating to contracting' would mean all matters relating to awarding, funding, managing, tracking, monitoring, and providing oversight to contracts and contractor personnel. The term `contracts in Iraq and Afghanistan' would mean a contract with the Department of Defense, the Department of State, or the United States Agency for International Development, a subcontract at any tier issued under such a contract, or a task order at any tier issued under such a contract, if the contract, subcontract, or task order involves work performed in Iraq or Afghanistan for a period longer than 14 days. The term `relevant committees of Congress' would mean the Committee on Armed Services of the Senate and House of Representatives, the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, the Committee on Foreign Relations of the Senate, and the Committee on Foreign Affairs of the House of Representatives.

SECTION 834--COMPETITION FOR EQUIPMENT SUPPLIED TO IRAQ AND AFGHANISTAN

This section would require the Secretary of Defense to ensure the use of competitive procedures in the procurement of pistols for the Iraqi Security Forces consistent with the provisions of section 2304 of title 10, United State Code.

SUBTITLE E--OTHER MATTERS

This section would require the Secretary of Defense to create a three-year demonstration project to identify, assess, leverage, and acquire commercial information technology (IT) systems for military applications. The demonstration project would develop a process to rapidly assess and establish priorities for DOD IT requirements while balancing the needs of the combatant commands, DOD capabilities, and innovative solutions offered by the private sector. This section would authorize $10.0 million for the demonstration.

SECTION 842--REPORT TO CONGRESS REQUIRED ON DELAYS IN MAJOR PHASES OF ACQUISITION PROCESS FOR MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS

This section would establish a permanent reporting requirement for the Secretary of Defense and would require the Under Secretary of Defense for Acquisition, Technology, and Logistics, to notify the congressional defense committees within 30 days when automated information systems programs experience a delay in specific phases of the acquisition cycle. This section would allow one full year to develop an official analysis of alternatives, 18 months to proceed from Milestone A and Milestone B, and six months for the approval of a capability development document before triggering a reporting requirement. This section would further require an explanation for each delay, a reassessment of cost estimates, and a certification of the wisdom for a continuation of the program.

SECTION 843--REQUIREMENT FOR LICENSING OF CERTAIN MILITARY DESIGNATIONS AND LIKENESSES OF WEAPONS SYSTEMS TO TOY AND HOBBY MANUFACTURERS

This section would amend section 2260 of title 10, United States Code, to require the Department of Defense to license trademarks, service marks, certification marks, and collective marks relating to the military designation and likenesses of military weapons systems to domestic companies that are toy and hobby manufacturers, distributors, or merchants. The fee charged for a license would be no more than required to cover the cost to the government, and the license would be non-exclusive.

SECTION 844--CHANGE IN GROUNDS FOR WAIVER OF LIMITATION ON SERVICE CONTRACT TO ACQUIRE MILITARY FLIGHT SIMULATOR

This section would amend section 832 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) to allow the Secretary of Defense to waive the prohibition against entering into a service contract to acquire a military flight simulator if granting such a waiver was in the national interest of the United States. Under section 832, the Secretary can only grant such a waiver if it is necessary for national security purposes.

SECTION 845--EVALUATION OF COST OF COMPLIANCE WITH REQUIREMENT TO BUY CERTAIN ARTICLES FROM AMERICAN SOURCES

This section would require that costs related to compliance with the limitations on the acquisition of items covered under sections 2533a and 2533b of title 10, United States Code, be excluded from consideration in the evaluation of bid offers. Specifically, this section would apply to the use of noncompliant materials based on the exceptions provided for reciprocal access agreements with foreign countries.

This section would require that certain processes be followed in making domestic non-availability determinations (DNADs) under the authority to waive limitations on the acquisition of items containing specialty metals under section 2533b of title 10, United States Code. In the case of waivers affecting multiple prime contracts, this section would require that DNADs be issued pursuant to a formal rulemaking process, be limited to the duration of the non-availability of the specialty metals concerned, and continue to require an accounting of non-compliant specialty metals purchased under such contracts. In the case of waivers affecting a single prime contract, this section would require the Secretary of Defense make available, to the maximum extent possible, information used by the Department of Defense in making the DNADs. Additionally, this section would require the Secretary of Defense to ensure that an accounting of non-compliant specialty metals purchased under the contract is made.

SECTION 847--MULTIPLE COST THRESHOLD BREACHES

This section would require that each military department, each defense agency, each defense field activity, and each combatant command managing a major defense acquisition program track the number of such programs experiencing excessive cost growth. For purposes of this section, excessive cost growth would be increases in cost in excess of the thresholds established in section 2433 of title 10, United States Code, and section 945 of this Act. This section would also require that any military department, defense agency, defense field activity, or combatant command managing more than two major defense acquisition programs that are experiencing excessive cost growth provide a report to the Secretary of Defense within 90 days of the end of the fiscal year, outlining any systemic deficiencies in its acquisition policies or practices and outlining possible corrections. This section would further require that the Secretary of Defense provide a report to the congressional defense committees containing a description of the excessive cost growth reported under this section and an assessment of the corrective actions proposed within 120 days of the end of the fiscal year.

SECTION 848--PHONE CARDS

This section would require the Secretary of Defense to ensure that new contracts for morale, welfare and recreation telephone service for personnel serving in combat zones are awarded using competitive procedures and that the contract proposals include options that minimize the cost of phone services to individual users while providing users the flexibility of using phone cards from phone service providers other than the entity offering the proposal. The section would also require that the Secretary of Defense, when considering an extension of existing contracts for such phone services, examine, with the contractor, the potential to further reduce the cost of services to service members by allowing the use of phone cards from phone service providers other than the contractor.

SECTION 849--JURISDICTION UNDER CONTRACT DISPUTES ACT OF 1978 OVER CLAIMS, DISPUTES, AND APPEALS ARISING OUT OF MARITIME CONTRACTS

This section would amend section 603 of title 41, United States Code, to extend the coverage of the Contract Disputes Act of 1978 (41 USC 601-613) to maritime contracts.

SECTION 850--CLARIFICATION OF JURISDICTION OF THE UNITED STATES DISTRICT COURTS TO HEAR BID PROTEST DISPUTES INVOLVING MARITIME CONTRACTS

This section would clarify that any actions arising out of a maritime contract shall be subject to the jurisdiction of the U.S. Court of Federal Claims, and shall not be heard in a U.S. District Court under the Suits in Admiralty Act (chapter 309 of title 46 USC) or the Public Vessels Act (chapter 311 of title 46 USC).

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

ITEMS OF SPECIAL INTEREST

On April 19, 2007, the Subcommittee on Air and Land Forces held a hearing, which highlighted the different views of the military services on the efficacy of designating an executive agent for the Department of Defense for medium- and high-altitude unmanned aerial systems (UASs).

The Department of the Air Force believes that the appointment of an executive agent for medium- and high-altitude UASs would achieve efficiencies in acquisition and enhance unmanned aerial vehicle (UAV) interoperability by providing common architectures for data links and radios. Further, the Air Force contends that in order to make the best use of limited operational resources, all medium- and high-altitude UAVs assigned to Operation Iraqi Freedom, regardless of service, should be available to the Coalition Forces Air Component Commander for tasking to the highest operational priority at any given time.

The other military services believe that the status quo better serves the Department of Defense. The Army contends that giving up the operational control of any of its UASs would expose its commanders at the tactical level to additional risk. They also argue that this would sever the feedback loop between training and development of UASs and feedback from Army operators.

The committee believes that this issue has not been adequately addressed for the past two years, potentially resulting in waste of limited resources and inefficient operational use of high value, limited UAS assets. The committee further believes that there may be potential benefits to a single service being given authorities and responsibilities as an executive agent to guide the Department's acquisition efforts to include research, development, testing and evaluation activities; procurement; logistics; and training. This could serve to reduce or eliminate unnecessary duplication of effort; enhance interoperability by directing standard architectures, data-links, radios, ground control stations; and achieve commonality with existing ISR processing, exploitation and dissemination systems.

Furthermore, the committee notes that Subtitle E of Title IX of this bill would require the Secretary of Defense to review the roles and missions of the Department of Defense. In conducting the review, the subtitle requires the Secretary to define the core mission areas of the Department, to identify the core competencies of the military departments, the Office of the Secretary of Defense, each Defense Agency, each Field Agency, and each of the combatant commands with acquisition authority, as associated with each defined core mission area. The committee firmly believes that if the core competencies of the military services were clearly articulated and the requirements system were aligned with such competencies, as required in Subtitle E, that unintended duplication of effort, inoperability issues, and disagreements over authority for operational control of medium- and high-altitude UASs could be mitigated.

Therefore, pending full implementation of Subtitle E across the department, the committee directs the Secretary to complete a review of UAS-related capabilities in accordance with subsections 943(a) and (b) of Title IX of this bill. This review shall determine whether the designation of a military department as executive agent for UAS for the Department of Defense would serve as the best means of eliminating unnecessary duplication of effort; enhancing interoperability by directing standardized architectures, data-links, radios, and ground control stations; and achieving commonality with existing ISR processing, exploitation, and dissemination systems. Finally, this review shall also ensure that a clear, objective assessment be included of operational risk to each military service as a result of changes proposed by the Air Force Chief of Staff in a March 5, 2007 memorandum to the Chairman Joint Chiefs of Staff, combatant commanders, and chiefs of other military services on designation of the Department of the Air Force as executive agent for medium- and high-altitude UAS. A report on this review shall be provided to the congressional defense committees by March 1, 2008.

Nothing included herein or in Subsection E of Title IX of this bill is intended to restrict in any way the current authority of the Secretary of Defense to appoint an Executive Agent for medium- and high-altitude unmanned aerial systems pending the outcome of the reports required by this bill and report on roles and missions.

DEFENSE POLICY REORGANIZATION

In section 901 of the conference report (H. Rept. 109-702) accompanying the John Warner National Defense Authorization Act for Fiscal Year 2007, the conferees outlined several significant concerns about the long-term impact of the reorganization of the Office of the Under Secretary of Defense for Policy (OUSD(P)) on the effective development, implementation, and review of national defense policies. These concerns included the possible implications of this reorganization on important policy areas such as special operations and low-intensity conflict, strategic capabilities, and combating weapons of mass destruction.

The committee understands that the intent behind the OUSD(P) reorganization was to balance the various geographical and functional areas of responsibility among the five Assistant Secretaries of Defense (ASDs) within OUSD(P) and that this re-balancing would allow those ASDs to interact more effectively with other national security officials and address more effectively the full range of current and emerging national security challenges. However, the committee has not received sufficient assurances that OUSD(P) officials are adequately addressing the issues reflected in the conference report. For example, the committee believes that the placement of responsibility for `strategic capabilities' and `force transformation' policies within the ASD for Special Operations and Low-Intensity Conflict and Interdependent Capabilities may dilute that ASD's statutory responsibility to supervise special operations and low-intensity activities, including oversight of related policies and resources in this critical area. It is unclear how OUSD(P) is mitigating, or is planning to mitigate, that risk.

The committee continues to expect that Department officials will consult frequently and openly with the congressional defense committees as they implement, review, and adjust, as necessary, this reorganization of a major Under Secretariat. OUSD(P) officials should make every effort to consider seriously the input of these committees and provide sufficient feedback to ensure that the committees remain informed as the reorganization moves forward.

FULL SPECTRUM ANALYSIS ON IRREGULAR WARFARE

The committee recognizes that the nation must be prepared for both conventional and unconventional threats and that violent extremist organizations, such as Al Qaeda, often resort to irregular warfare to engage the U.S. through asymmetric and indirect approaches. Additionally, the committee recognizes that Special Operations Forces (SOF) represent the Department's premier capability to counter such unconventional threats.

Accordingly, the committee commends the recommendation contained in the 2006 Quadrennial Defense Review (QDR) to increase U.S. Special Operations Forces (SOF) and supports the plan of U.S. Special Operations Command (SOCOM) to increase total active duty personnel endstrength by more than 24 percent, or 11,000, between fiscal years 2007 and 2013. The committee strongly supports SOCOM's plan to add to the force five Special Forces (SF) battalions, three civil affairs (CA) battalions and five companies focused on psychological operations (PSYOP). The committee recognizes such growth as essential for improving unconventional warfare capabilities within the SOF community, consonant with a concomitant increase of CA and PSYOP units in the U.S. Army Reserve. The committee views the growth in and emphasis on SF, PSYOP and CA as necessary to improve SOCOM's capability to conduct unconventional warfare and encourages further effort in this area. In addition, the committee recognizes that conventional forces have been called upon to operate outside of their traditional conventional missions as they contribute to combating these unconventional threats.

The committee remains ultimately concerned about the long-term sustainment of the Department's ability to conduct irregular warfare operations that often require an `indirect' or `non-kinetic' approach. These techniques require a mature, highly skilled and well-educated force to achieve success, and SOF, specifically formed to provide such a force, will continue to be the Department's primary unconventional force. Across the Department, stable long-term resource allocations are required to produce such a capability but the existence of an innovative, flexible personnel management system is also necessary. The requirements of unconventional warfare and COIN campaigns are unique. Fundamentally, their success often relies upon individual judgment at the small unit level by operators familiar with specific locations, indigenous communities and their unique and residential customs. Such requirements place a premium on the importance of recruiting, developing, and promoting individuals familiar with and best suited for the sensitivities of such missions.

To support and promote an effective irregular warfare capability, the committee directs the Secretary of Defense to submit to the congressional defense committees a report on the Department of Defense's (DOD's) plan to address the unique needs of irregular warfare. The report shall include but not be limited to:

(1) An assessment of the respective manning level rates at indirect action units within SOCOM as compared with the manning levels at units primarily engaged in the discipline of direct action;

(2) An assessment of how conventional units are being trained in and are conducting irregular warfare missions such as counterinsurgency;

(3) A description of the conventional force in the future and how it is expected to address the unique needs of irregular warfare missions;

(4) An assessment of the adequacy of DOD's personnel management programs in developing and supporting irregular warfare capabilities, and an explanation of SOCOM's role in monitoring and influencing the professional development and accession of both commissioned and non-commissioned special operators throughout the SOF community;

(6) The consideration of specific guidance to promotion and command screening boards to encourage a balance in the selection of individuals who have both conventional and unconventional backgrounds, or in the case of SOF, who come from `indirect' and `direct' action units; and

(7) An assessment of alternative organizational structures that could best provide an unconventional warfare capability within the Department and an assessment of how SOCOM can best ensure a balanced approach in the allocation of resources between the respective disciplines of direct and indirect action.

This report shall be submitted to the congressional defense committees by March 1, 2008.

LEGISLATIVE PROVISIONS

SUBTITLE A--DEPARTMENT OF DEFENSE MANAGEMENT

SECTION 901--ADDITIONAL REQUIREMENTS RELATING TO THE LIMITATION ON MAJOR DEPARTMENT OF DEFENSE HEADQUARTERS ACTIVITIES PERSONNEL

This section would allow the Secretary of Defense to annually update the definition of major headquarters activities in the budget submission to Congress with the new definition that would take effect January 1 of the following year. This section would also allow a service secretary to waive the limitation on headquarters personnel if the secretary certifies to the Secretary of Defense that such a waiver is necessary to eliminate a contract for services in order to reduce costs or to bring back into the government a position that carries out inherently governmental functions.

Section 130a of title 10, United States Code, limits the number of personnel assigned to major Department of Defense (DOD) headquarters activities to 85 percent of the number assigned to those headquarters activities on October 1, 1999, and further defines those activities by referencing a DOD directive. The Department has requested a revision to section 130a of title 10, United States Code, to allow for greater flexibility in defining major DOD headquarter activities and for relief from the limits on headquarters personnel to allow some outsourced positions to be brought back into the government. The committee shares the goal of reducing the reliance on outsourcing for inherently governmental functions, and agrees that some updating of the definition of major headquarters activities may be appropriate.

SECTION 902--FLEXIBILITY TO ADJUST THE NUMBER OF DEPUTY CHIEFS AND ASSISTANT CHIEFS

This section would provide the secretaries of the military departments with greater flexibility to determine the number of Deputy Chiefs of Staff or, in the case of the Navy, Deputy Chiefs of Naval Operations, and Assistant Chiefs of Staff or, in the case of the Navy, Assistant Chiefs of Naval Operations. The total number of positions for each service would not exceed eight.

SECTION 903--CHANGE IN ELIGIBILITY REQUIREMENTS FOR APPOINTMENT TO DEPARTMENT OF DEFENSE LEADERSHIP POSITIONS

This section would reduce the period of time before a commissioned officer of a regular component of an armed force must wait after relief from active duty to become eligible for appointment to the position of Secretary of Defense, Deputy Secretary of Defense, and the Under Secretary of Defense for Policy from ten years to five.

SECTION 904--REVISIONS IN FUNCTIONS AND ACTIVITIES OF SPECIAL OPERATIONS COMMAND

This section would modify the authorities governing U.S. Special Operations Command (SOCOM) to accurately reflect current mission requirements. This section would codify SOCOM's responsibility for the synchronization of DOD efforts to combat terrorists and associated alliances. This section would further revise the statute governing special operations activities, place greater emphasis on unconventional warfare techniques and missions, and require the Commander, U.S. Special Operations Command, to assess the abilities of the special operations community to meet the demands of unconventional warfare. Finally, this section would establish a reporting requirement detailing and providing an assessment of DOD personnel management programs as they relate to the unique needs of the SOCOM community.

SECTION 905--REDESIGNATION OF THE DEPARTMENT OF THE NAVY AS THE DEPARTMENT OF THE NAVY AND MARINE CORPS

This section would designate the Department of the Navy as the Department of the Navy and the Marine Corps and change the title of its Secretary to the Secretary of the Navy and Marine Corps. This section would formally recognize the responsibility of the Office of the Secretary of the Navy over both the Navy and Marine Corps and the Marine Corps' status as an equal partner with the Navy.

SECTION 906--MANAGEMENT SYSTEM OF THE DEPARTMENT OF DEFENSE

This section would require the Secretary of Defense to assign duties relating to the strategic oversight of all significant management issues of the Department of Defense to a senior official of a rank not lower than an Under Secretary of Defense. This section would also require that the Secretary adopt a management structure for the Department of Defense, including business support areas, which supports the essential management goals of the Department. This section would also require the Secretary to establish essential management goals for the Department, including, at a minimum, a comprehensive business transformation plan; a well-defined enterprise-wide business systems architecture; and financial statements that receive clean audit opinions during independent financial audits. This section would further require the Secretary of Defense to submit to the Senate Committee on Armed Services and the House Committee on Armed Services a report, within 90 days of the enactment of this Act, on the implementation of this section.

SECTION 907--ACQUISITION PARITY FOR SPECIAL OPERATIONS COMMAND

This section would modify existing law to eliminate the requirement that the acquisition programs of U.S. Special Operations Command support the acquisition priorities of the respective military services. This section would further modify the consultation requirement to ensure that the DOD senior acquisition official takes steps to encourage the heads of defense agencies to support the priorities of the respective military departments.

SECTION 908--DEPARTMENT OF DEFENSE BOARD OF ACTUARIES

This section would repeal section 1464 of title 10, United States Code, in its entirety as well as subsection (e) of section 2006. It would streamline advice provided to the Secretary of Defense and his other senior advisors by consolidating the Department of Defense Retirement Board of Actuaries and the Department of Defense Education Benefits Board of Actuaries into the Department of Defense Board of Actuaries. This section also would consolidate the authorities to appoint and remove future members of the Board with the President, rather than divide those authorities between the Secretary and the President.

SUBTITLE B--SPACE ACTIVITIES

SECTION 911--SPACE PROTECTION POLICY AND STRATEGY

This section would require the Secretary of Defense to conduct an analysis and assessment of current and future space situational awareness and space protection requirements and capabilities and to report that strategy to the congressional defense committees by March 15, 2008, and every other year thereafter.

The committee is concerned that space situational awareness and the protection of U.S. space assets have not received adequate emphasis in the past. The Chinese anti-satellite test in early 2007 highlighted the vulnerability of our space assets, but represents only one of a range of threats to our nation's space capabilities. The committee believes further information about current and future needs is required to guide efforts to strengthen our ability to deter, deny, and recover from various possible attacks to U.S. space assets.

SECTION 912--BIENNIAL REPORT ON MANAGEMENT OF SPACE CADRE WITHIN THE DEPARTMENT OF DEFENSE

This section would require the Secretary of Defense to submit a report every two years on the management of the cadre of space professionals within the Department of Defense.

The committee commends existing space professional development efforts within the military departments, to include increased education and training opportunities, establishment of space-related specialty codes, and development of personnel databases. However, a September 2006 Government Accountability Office (GAO) report found that management actions are needed to better identify, track, and train Air Force space personnel. Without an assessment of space cadre requirements and the development and use of metrics, the committee believes it will be difficult to track progress in ensuring the Department has sufficient numbers of personnel with the expertise, training, and experience to meet current and future national security space needs and understand the impact to space acquisition and operations resulting from the Air Force reduction of 65,000 personnel from fiscal year 2004 through fiscal year 2009.

SUBTITLE C--CHEMICAL DEMILITARIZATION PROGRAM

SECTION 921--CHEMICAL DEMILITARIZATION CITIZENS ADVISORY COMMISSION

This section would modify existing law to allow a Chemical Demilitarization Citizens' Advisory Commission to remain in existence, at the discretion of the Governor of the State, until after all closure activities are completed at a chemical agent destruction facility pursuant to the Solid Waste Disposal Act, as amended. The extension of authority included in this section would accommodate communities concerned with additional remediation or regulatory work still required at demilitarization sites after the destruction of the stockpiles. This section would also include a technical amendment to reflect the proper office of responsibility within the Department of the Army for serving as the Army's representative to the commissions.

SECTION 922--SENSE OF CONGRESS ON COMPLETION OF DESTRUCTION OF UNITED STATES CHEMICAL WEAPONS STOCKPILE

This section would express the sense of Congress that the Department of Defense should continue with its plan for on-site disposal of the assembled chemical weapons alternative (ASWA)-managed stockpiles located at Pueblo Chemical Depot, CO, and Blue Grass Army Depot, KY, and ensure that extensive consultation and notification processes exist between representatives of the Department and representatives of the relevant States and local communities.

SUBTITLE D--INTELLIGENCE RELATED MATTERS

SECTION 931--REPORTS ON FOREIGN LANGUAGE PROFICIENCY

This section would require the Secretary of Defense and secretaries of the military departments to assess and submit an annual report on the foreign language capacity and capabilities of the Department of Defense. This section would reaffirm concerns about the management of linguists in the armed forces expressed by the committee in previous legislation and would build upon the report required by section 581 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163), which the committee notes it has not yet received. The committee recognizes work by the Department to improve and define language requirements for present and future operations and requires additional information to assess progress in improving foreign language capacity and capabilities within the Department.

The committee expects the Secretary of Defense and secretaries of the military departments will use a table format in its annual reports to ensure consistency in data reporting. This section would require the Department to report on 14 specific metrics which are explained in further detail below. The Secretary may also recommend elimination of language-related reporting that is duplicative of this requirement.

(1) Organization--separately identify each branch of the armed services and other elements of the Department of Defense that maintain foreign language competencies.

(3) For each organization and language and specific dialect identified, include--

(a) Billets Authorized.

(b) Requirement Current Year--number of billets required in the current fiscal year.

(c) Requirement 1-5 years--number of billets for each of the five years after the current year.

(d) On Board--actual number of linguists regardless of their current billet.

(e) Using Language--number of linguists filling a language billet in that language and dialect.

(f) Not Using Language--number of linguists whose primary duty is not language-related.

(g) Qualification Level--number of personnel at each level of proficiency based on the Interagency Language Roundtable Guidelines (ILRG). Include number of personnel within each category for each language or dialect (ILRG levels 1 through 5). Annotate separately if this meets the needs of each organization.

(h) Unqualified--number of linguists who are unable to perform duties as a linguist

(i) Accessions during the past year.

(j) Departures during the past year.

(1) Allies--percentage of language requirements fulfilled by allies. Annotate separately if this meets the needs of each organization.

(2) Contractors--percentage of language requirements fulfilled by private contractor personnel. Annotate separately if this meets the needs of each organization.

SECTION 932--TECHNICAL AMENDMENTS TO TITLE 10, UNITED STATES CODE, ARISING FROM ENACTMENT OF THE INTELLIGENCE REFORM AND TERRORISM PREVENTION ACT OF 2004

This section would amend 16 provisions in title 10, United States Code, to clarify whether the prior reference to the `Director of Central Intelligence' should be considered as a reference to `Director of National Intelligence' or `Director of Central Intelligence Agency.' The Intelligence Reform and Terrorism Prevention Act of 2004 separated the responsibilities and authorities of these positions and this section would clarify the assignments.

SUBTITLE E--ROLES AND MISSIONS ANALYSIS

SECTION 941--ANALYSIS AND ORGANIZATION OF ROLES AND MISSIONS OF THE DEPARTMENT OF DEFENSE

This section would amend title 10, United States Code, to require that a review of the roles and mission of the Department of Defense be performed every four years. The review would be performed by the Secretary of Defense, in consultation with the Chairman of the Joint Chiefs of Staff, and would be required to organize the missions of the Department into core mission areas such as dominance of ground, air, maritime and space environments, expeditionary warfare, mobility, homeland defense, and cyber operations. This section would require the Secretary to submit a report on each review to the Senate Committee on Armed Services and the House Committee on Armed Services by the date that the budget request for the next fiscal year is submitted. The first review would be performed during 2008. This section would repeal a superseded requirement that the Chairman of the Joint Chiefs of Staff perform a roles and mission analysis as a part of the Quadrennial Defense Review required by section 118 of title 10, United States Code.

SECTION 942--IDENTIFICATION OF CORE COMPETENCIES OF THE MILITARY DEPARTMENTS AND OTHER ENTITIES WITHIN THE DEPARTMENT OF DEFENSE

This section would amend title 10, United States Code, to require that the Secretary of Defense identify the core competencies of the military departments, the Office of the Secretary of Defense, each defense agency, and each defense field activity. This section would require that each core competency be clearly associated with a core mission area of the Department of Defense. The section would require the Secretary complete identification of the core competencies and submit a report on this matter by January 1, 2009.

SECTION 943--REVIEW OF CAPABILITIES OF THE MILITARY DEPARTMENTS AND OTHER ENTITIES WITHIN THE DEPARTMENT OF THE DEFENSE

This section would require that the Secretary of Defense conduct a review of the capabilities that each of the military departments, the Office of the Secretary of Defense, each defense agency, and each defense field activity is maintaining or developing. This review would determine whether these capabilities are outside of each entity's core competencies or of the core mission areas of the Department of Defense, and would have to establish a justification, if any, for duplication of capabilities. This review would also determine whether any core competencies required to effectively perform the core mission areas of the Department are not being maintained or developed. This section would require the review to be completed by June 1, 2009, and would prohibit the start pf any new major defense acquisition program after June 1, 2009, until the review has been submitted to the House Committee on Armed Services and the Senate Committee on Armed Services.

This section would amend section 181 of title 10, United States Code, to require the Joint Requirements Oversight Council (JROC) to organize its review of requirements according to the core mission areas established by the Secretary of Defense by June 1, 2009, and to complete the organization of previously approved requirements documents according to the capability portfolio structure by October 1, 2009.

This section would clarify the necessity for the JROC to provide the military services with clear guidance on the priority assigned to each requirement and on the expected resources allocated to fulfill such a requirement. Accordingly, this section would add the Under Secretary of Defense for Acquisition, Technology, and Logistics and the Under Secretary of Defense (Comptroller) as permanent members of the JROC to help the council provide this guidance. This section would require the JROC to organize its review of requirements by core mission area and would stipulate that the officer or official assigned to lead the review of a core mission area must be of a different military department than the deputy for that core mission area. This section would also make explicit the responsibility of the Chairman of the Joint Chiefs of Staff to ensure the effective coordination of military requirements.

The committee is concerned that the current requirements process is too insulated from the realities of the acquisition and budget processes to produce requirements that most efficiently guide the expenditure of the Department of Defense's resources. By incorporating clear priorities and budget guidance into the JROC process, this section would ensure that decisions made in these areas are truly joint, and are not driven primarily by the military department's budget considerations. This section would also define the term `joint military requirement' for purposes of this section to clarify that the purpose of the JROC's review of requirements is to establish the capabilities required to perform the core mission areas of the Department, rather than the specific performance characteristics of a weapon system.

SECTION 945--REQUIREMENT FOR CERTIFICATION OF MAJOR SYSTEMS PRIOR TO TECHNOLOGY DEVELOPMENT

This section would amend title 10, United States Code, to require that the major systems of the Department of Defense be certified by the Joint Requirements Oversight Council (JROC) prior to the start of technology development. This section would require the JROC to certify and affirm that the system fulfills an approved initial capabilities document, that the system is being executed by an entity with a relevant core competency, and that a cost estimate for the system has been submitted that is consistent with the level of resources associated with the relevant initial capabilities document. This section would also require that if, at any time prior to Milestone B, the system experienced cost growth of more than 25 percent of the cost estimate submitted to the JROC at the time of certification, the system would be returned to the JROC for a decision on whether to terminate or continue the system.

SECTION 946--PRESENTATION OF FUTURE-YEARS MISSION BUDGET BY CORE MISSION AREA

This section would amend section 222 of title 10, United States Code, to require that the future-years mission budget of the Department of Defense be organized by core mission area. This section would also require that the future-years mission budget be submitted at the same time as the future-years defense program. This section would be effective starting with the fiscal year 2010 budget.

This section would amend title 10, United State Code, to require the Secretary of Defense, within 90 days of enactment of this Act, to prepare an extended planning annex for each operational and contingency plan of the Department of Defense. These extended planning annexes would include an assessment of the capabilities needed to successfully accomplish the missions for which the plans were created. The assessment would be required biannually, or any time the plans of the Department are substantially changed, and would require a time-phased capability assessment using a 15-year planning horizon. This section would also require the Chairman of the Joint Chiefs of Staff, through the Joint Requirements Oversight Council, to assess the ability of fielded systems and existing science and technology efforts to meet the capability requirements established by the extended planning annexes.

SUBTITLE F--OTHER MATTERS

SECTION 951--DEPARTMENT OF DEFENSE CONSIDERATION OF EFFECT OF CLIMATE CHANGE ON DEPARTMENT FACILITIES, CAPABILITIES, AND MISSIONS

This section would require the next National Security Strategy and the next National Defense Strategy to include appropriate guidance to military planners to assess the risks of projected climate change to current and future missions, guidance for updating defense plans based on these assessments, and capabilities needed to reduce future impacts. Further, this section would require the next Quadrennial Defense Review to examine the capabilities of the U.S. military to respond to the consequences of climate change, in particular, preparedness for natural disasters from extreme weather events and other missions the U.S. military may be asked to support both at home and abroad.

The committee believes that the strategic, social, political, and economic consequences of global climate change are likely to result in increased instability in some parts of the world. Further, the committee believes that a failure to recognize, plan for, and mitigate the geopolitical effects of a changing climate will have an adverse impact on the national security interests of the United States.

SECTION 952--INTERAGENCY POLICY COORDINATION

This section would require the Secretary of Defense to develop a plan to appoint either the Under Secretary of Defense for Policy or another official to be the lead official in the Department of Defense for improving and reforming the interagency coordination process on national security. The duties of the official, if named by the Secretary, would include leading Department of Defense efforts to develop policy affecting the interagency process, advocating for greater interagency coordination and contributions in the execution of the National Security Strategy, serving as the Department of Defense representative at U.S. Government forums concerned with interagency policy, making recommendations as to changes in laws or regulations to enhance the ability of the Department of Defense to work better with other agencies, serving as the coordinator for planning and training assistance designed to enhance the interagency process and that is supplied by the Department of Defense to other agencies, and serving as the lead official in the Department of Defense for the development of joint interagency task forces. The section would also require that the official named submit an annual report to Congress on the actions taken by the Department of Defense to enhance interagency coordination, the views of the Department of Defense on challenges to improving interagency coordination, and suggestions as to changes in law or regulation that would enhance the interagency process.

Over the past several years, the committee has undertaken several initiatives to enhance interagency coordination on national security matters, this section being only the latest. The committee has been generally pleased that officials of the Department of Defense have recognized that other agencies of the U.S. Government can make important contributions to the national security and to ongoing operations and that those officials have become strong advocates for reforming the national security interagency process. The committee is disappointed, however, that other agencies of the U.S. Government have not shared this recognition, and that others involved in the national security interagency process have not reciprocated the efforts of the committee and the Department of Defense. The committee notes with concern the Administration's failure to deliver the report on improving interagency support for security, stabilization, transition, and reconstruction efforts that was mandated by section 1035 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) by the April 1, 2007, deadline in that legislation.

SECTION 953--EXPANSION OF EMPLOYMENT CREDITABLE UNDER SERVICE AGREEMENTS UNDER NATIONAL SECURITY EDUCATION PROGRAM

This section would create an additional option in a position in the field of education for participants in the National Security Education Program to fulfill their service obligation for those who cannot secure other federal employment in accordance with the current provisions of the program.

SECTION 954--STUDY OF NATIONAL SECURITY INTERAGENCY SYSTEM

This section would authorize the Secretary of Defense to enter into an agreement with an independent, nonpartisan, nonprofit organization to undertake a year-long study of the national security interagency system and to make suggestions about reforming that process. The section authorizes the use of up to $4.0 million for this purpose.

The committee understands that the Secretary of Defense has expressed interest in undertaking a study like the one described above, but has hesitated to enter into such an agreement without the agreement of other cabinet secretaries. The committee supports the Secretary of Defense's efforts to interest his colleagues in the cabinet in reforming the national security interagency process. The committee hopes that the secretaries of other agencies of the U.S. Government that are involved in national security will support the effort authorized by this section both with their full and complete cooperation and, if necessary, with financial assistance. The Department of Defense has much to gain from reforming and improving the national security interagency process, but so do other agencies and the nation as a whole, and other agencies will hopefully recognize this and act accordingly.

TITLE X--GENERAL PROVISIONS

ITEMS OF SPECIAL INTEREST

COUNTER-DRUG ACTIVITIES

OVERVIEW

The budget request contained $936.8 million for drug interdiction and counter-drug activities, in addition to $193.3 million, for operational tempo, which is contained within the operating budgets of the military services. The budget is organized in fiscal year 2008 to address four broad national priorities: (1) international support; (2) domestic support; (3) intelligence and technology; and (4) demand reduction.

The committee recommends an authorization for fiscal year 2008 Department of Defense counter-drug activities as follows (in millions of U.S. dollars):

FY08 Drug Interdiction and Counter-Drug Request

$936.8

International Support

$431.5

Domestic Support

$206.2

Intelligence Technology and Other Demand Reduction

$162.9

Demand Reduction

$136.2

Recommended Decreases

International Support

$12.0

Recommended Increases

Southwestern Border Fence

$8.0

Airborne Counter-Narcotics/Terrorism Threat Protection

$4.0

Recommendation

$936.8

ITEMS OF SPECIAL INTEREST

Budget Requests

The budget request contained $936.8 million for drug interdiction and counter-drug activities, including all counter-drug resources in the Department of Defense (DOD) with the exception of those resources in the operating budget for the military services and those resources which are appropriated or requested in emergency budgets. For fiscal year 2007 alone, the committee notes that counter-drug activities in Afghanistan and Central Asia will be funded with at least $63.6 million, which was appropriated in the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006 (Public Law 109-234) and remains unexpended. The fiscal year 2007 budget request for ongoing military operations contained an additional $259.1 million for counter-drug efforts in Afghanistan, Central Asia, and other countries, and an additional $257.6 million was contained in the fiscal year 2008 budget request for ongoing military operations, both of which were presented this year to Congress. The committee notes that the fiscal year 2008 budget request represents the fourth year of emergency budget requests for counter-drug activities in Afghanistan and the rest of Central Asia without the inclusion of any funding for these activities in a regular budget request.

International Support

The budget request contained $431.5 million for international support. The committee understands the importance of international support and notes that this request for international support will result in increased operational support for all four military services. This support includes detection and monitoring platforms and assets; command and control support; and the training, equipment, and supplies intended for other nations that are key to the U.S. national drug strategy and defense security cooperation goals.

The committee recommends $419.5 million, a decrease of $12.0 million, for international support. The committee notes that this small decrease will not result in diminished activities as the international support program continues to receive funding from emergency budget requests. The budget requests for ongoing military operations contained an additional $259.1 million for fiscal year 2007 and $257.6 million for fiscal year 2008 to support counter-drug activities in other countries.

The committee is particularly concerned about the level of counter-drug support for the Colombian military. In March, 2007, the Department of State reported that some former members of the United Self-Defense Forces of Colombia, a foreign terrorist organization, continue to engage in drug trafficking. There are also increasingly troubling reports of collusion between a number of Colombian military units and senior officers and elements of the United Self-Defense Forces of Colombia.

Southwest Border Fence

The committee remains concerned that the southwest border with Mexico continues to be a major corridor for drug and human smuggling. The committee understands that since 1990, when the Department of Defense became involved in addressing the heavily used smuggling corridor in San Diego, California, by implementing physical barriers throughout the region, drug `drive-throughs' have been eliminated. The number of apprehensions of unauthorized migrants has diminished greatly as the infrastructure matured into an effective law enforcement tool. The committee believes that border infrastructure is a force multiplier, which allows counter-drug assets and personnel to be more effectively employed.

The committee recommends an increase of $8.0 million for drug interdiction and counter-drug activities to continue the work on the 14-mile Border Infrastructure System near San Diego, California, and to construct at least 10 miles of double fencing at the Marine Corps Station in Yuma, Arizona.

The committee recommends an increase of $4.0 million in domestic support of detection and interdiction of illicit narcotics trafficking throughout the United States.

LEGISLATIVE PROVISIONS

SUBTITLE A--FINANCIAL MATTERS

SECTION 1001--GENERAL TRANSFER AUTHORITY

This section would allow the Secretary of Defense to make transfers between any amounts of authorizations for fiscal year 2008 in division A of this Act. This section would limit the total amount of transferred under this authority to $4.5 billion. This section would also require prompt notification to Congress of each transfer made. This section would prohibit funds from being transferred out of an account of the National Guard or other reserve components of the armed forces to a different account other than another account of the National Guard or other reserve component.

SECTION 1002--UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN FISCAL YEAR 2008

This section would authorize the United States contribution to the North Atlantic Treaty Organization common-funded budgets for fiscal year 2008, including the use of unexpended balances.

SUBTITLE B--POLICY RELATING TO VESSELS AND SHIPYARDS

SECTION 1011--LIMITATION ON LEASING OF FOREIGN-BUILT VESSELS

This section would amend section 2401 of title 10, United States Code, to prohibit the secretary of a military department from entering into a contract for lease or charter of a vessel for a term of more than 24 months. This would include all options to renew or extend the contract, if the hull or superstructure of that vessel was constructed in a foreign shipyard.

SECTION 1012--POLICY RELATING TO MAJOR COMBATANT VESSELS OF THE STRIKE FORCES OF THE UNITED STATES NAVY

This section would require that all new ship classes of submarines, cruisers, and aircraft carriers be built with nuclear power systems unless the Secretary of Defense notifies the committee that it is not in the national interest to do so.

The committee believes that the mobility, endurance, and electric power generation capability of nuclear powered warships is essential to the next generation of Navy cruisers. The Navy's report to Congress on alternative propulsion methods for surface combatants and amphibious warfare ships, required by section 130 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163), indicated that the total lifecycle cost for medium-sized nuclear surface combatants is equivalent to conventionally powered ships. The committee notes that this study only compared acquisition and maintenance costs and did not analyze the increased speed and endurance capability of nuclear powered vessels.

The committee believes that the primary escort vessels for the Navy's fleet of aircraft carriers should have the same speed and endurance capability as the aircraft carrier. The committee also notes that surface combatants with nuclear propulsion systems would be more capable during independent operations because there would be no need for underway fuel replenishment.

SUBTITLE C--COUNTER-DRUG ACTIVITIES

SECTION 1021--EXTENSION OF AUTHORITY FOR JOINT TASK FORCES TO PROVIDE SUPPORT TO LAW ENFORCEMENT AGENCIES CONDUCTING COUNTER-TERRORISM ACTIVITIES

This section would extend the authority provided in section 1022b of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136), which expires at the end of fiscal year 2007, through fiscal year 2008. The current authority provides that a joint task force of the Department of Defense, which is providing support to law enforcement agencies conducting counter-drug activities, may also provide, subject to all applicable laws and regulations, these law enforcement agencies with support for their counter-terrorism activities.

SUBTITLE D--REPORTS

SECTION 1031--EXTENSION AND MODIFICATION OF REPORT RELATING TO HARDENED AND DEEPLY BURIED TARGETS

This section would extend by six years the requirement for the Secretary of Defense, the Secretary of Energy, and the Director of Central Intelligence to submit jointly a report on the research and development, procurement, and other activities undertaken to develop military capabilities to defeat hardened and deeply buried targets to the congressional defense committees, the Senate Select Committee on Intelligence, and the House Permanent Select Committee on Intelligence. Further, this section would change the reporting requirement from annually to biennially, and would require that the report include activities of the preceding two fiscal years, as well as provide a plan for the current fiscal year and the next fiscal year. This section would change the signatory from the Director of Central Intelligence to the Director of National Intelligence.

This section would require the Comptroller General to conduct a review of the activities and operations of the Joint Improvised Explosive Device Defeat Organization (JIEDDO).

The committee recognizes that improvised explosive devices (IEDs) continue to be a primary cause of casualties for U.S. armed forces in Operation Iraqi Freedom and Operation Enduring Freedom. The committee supports the Department of Defense's (DOD) efforts to defeat these lethal threats. To date, the Congress has provided over $6.0 billion for JIEDDO, which was created by the Deputy Secretary of Defense to lead, advocate, and coordinate all DOD actions to defeat IEDs. The committee believes that JIEDDO has demonstrated marginal success in achieving its stated mission to eliminate the IED as a weapon of strategic influence. The committee understands that this is a complex and difficult mission, but the committee has not had sufficient insight into JIEDDO's efforts to determine if adequate effort is being applied to the full spectrum of tasks required to defeat the IED.

The committee intends to work with the Comptroller General to define the scope and focus of the review. This section would require the Comptroller General to submit a report summarizing the findings of this review to the congressional defense committees within 180 days after the enactment of this Act.

SECTION 1033--REPORT ON A NATIONAL JOINT MODELING AND SIMULATION DEVELOPMENT STRATEGY

This section would require the Secretary of Defense to submit a report within nine months after the enactment of this Act to the congressional defense committees that would provide for the development and implementation of a joint modeling and simulation concept to support the full spectrum of Department of Defense modeling and simulation requirements and that outlines a plan that details the Department's modeling and simulation coordination efforts.

SUBTITLE E--OTHER MATTERS

SECTION 1041--ENHANCEMENT OF CORROSION CONTROL AND PREVENTION FUNCTIONS WITHIN THE DEPARTMENT OF DEFENSE

This section would amend section 2228 of title 10, United States Code, to provide for a permanent Director of the Office of Corrosion Policy and Oversight as an independent activity within the Office of the Under Secretary of Defense for Acquisition, Technology and Logistics (USD(ATL)). This section would establish qualifications for the Director, assign duties, and provide additional authorities. It also would require the Secretary of Defense to submit with the annual fiscal-year budget request a report detailing the long-term strategy developed under section 2228(c) of title 10, United States Code, the return on investment achieved by implementing the strategy, and an explanation of the funding request versus funding requirement. The Government Accountability Office (GAO) would be required to review the Secretary's report within 60 days of submission.

Section 1067 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314) required the Department of Defense to establish a corrosion prevention and mitigation program. Five years later, the Department has made limited progress toward implementing a corrosion prevention strategy and applying policy across the Department, according to the GAO. The Corrosion Office was established in 2003 as an independent activity within the Office of the USD(ATL), reporting directly to the Corrosion Executive. However, the Corrosion Office is now situated in the Systems and Software Engineering Directorate, three layers removed from the statutorily mandated Corrosion Executive.

The committee is aware that the Office of Corrosion Policy and Oversight has achieved a significant level of technical progress. However, the committee remains concerned about the Department's commitment to the Corrosion Prevention and Control (CPAC) program. The fiscal year 2008 budget request contained $14.0 million allocated toward a problem that costs the Department $10.0 billion in documented corrosion. In light of the $3.6 billion lifecycle cost avoidance achieved by the CPAC program's efforts and a 49.6-to-1 return on investment, the Department appears to be missing an opportunity for greater corrosion prevention and mitigation. By giving the Director direct reporting authority to the USD(ATL) and assigning the Director the duties specified in section 2228 of title 10, United States Code, the committee anticipates progress toward achieving the policy, funding and savings goals envisioned in section 1067 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314).

SECTION 1042--SUPPORT BY NATIONAL GUARD FOR NATIONAL SPECIAL SECURITY EVENTS AND OTHER CRITICAL NATIONAL SECURITY ACTIVITIES

This section would authorize federal departments to provide reimbursement to the Department of Defense in cases when National Guard personnel are deployed under the authority of title 32, United States Code, in support of National Special Security Events and other activities determined significant by the Secretary of Defense. Such deployments shall be in support and at the request of civil authorities, as well as approved by the Secretary of Defense.

This section would amend section 127b of title 10, United States Code, to increase the size of payments allowed under the Department of Defense combating terrorism rewards program and provide new authority for U.S. Government personnel to provide rewards through government personnel of coalition or partnered nations. Consistent with existing authority, such payments would be authorized to a person who provides information or nonlethal assistance directly or indirectly to the forces of the United States. Such third-party payments would be authorized only if the Secretary of Defense has instituted procedures for such activities, including accountability measures for such transactions. This section would require a report to the congressional defense committees by April 1, 2008, on the use of the expanded authority it would provide, and would require annual reporting requirements.

SECTION 1044--REVISION OF PROFICIENCY FLYING DEFINITION

This section would provide a definition of `proficiency flying.' This section also would allow the Department of Defense (DOD) to cancel outdated guidance on flying proficiency and its related elements for participating rated personnel. Current DOD policy on flying proficiency is now included in Department of Defense Instruction 7730.57, `Aviation Career Incentives Act of 1974 and Required Annual Report' (July 18, 2003).

SECTION 1045--SUPPORT FOR NON-FEDERAL DEVELOPMENT AND TESTING OF MATERIAL FOR CHEMICAL AGENT DEFENSE

This section would provide the Secretary of Defense the authority to provide small quantities of toxic chemicals or precursors to private industry for the development and testing of materials designed to be used for protective purposes.

SECTION 1046--CONGRESSIONAL COMMISSION ON THE STRATEGIC POSTURE OF THE UNITED STATES

This section would repeal section 1051 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163); establish a new, congressionally appointed, bipartisan commission to examine the strategic posture of the United States; and authorize $5.0 million for the commission's activities.

The Nuclear Posture Review (NPR) of 2001 raised fundamental questions about U.S. nuclear weapons policy, and the committee believes that there is an urgent need for a debate over the role of nuclear weapons in U.S. strategic posture. The committee notes that although the Administration has proposed renewed development of nuclear warheads, it has not articulated its views on the role of nuclear weapons in U.S. strategic posture since issuance of the NPR. The committee believes clear policy objectives should be established before Congress commits to ambitious new programs.

This section would charge the commission with examining the role of deterrence in the 21st century, assessing the role of nuclear weapons in U.S. national security strategy, and making recommendations as to the most appropriate strategic posture for the United States. This section would require the commission to submit a report to the President, the Secretary of Defense, the Secretary of Energy, the Secretary of State, the Senate Committee on Armed Services, and the House Committee on Armed Services by December 1, 2008.

SECTION 1047--TECHNICAL AND CLERICAL AMENDMENTS

This section would make a number of technical and clerical amendments to existing law of a non-substantive nature.

SECTION 1048--REPEAL OF CERTIFICATION REQUIREMENTS

This section would repeal section 1063 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-183). This would reaffirm state procurement authority over the Abraham Lincoln National Airport Commission, University Park, Illinois, and would remove restrictive representation requirements consistent with the Illinois Attorney General's opinion File #05-010, dated December 16, 2005.

SECTION 1049--PROHIBITION ON SALE BY DEPARTMENT OF DEFENSE OF PARTS FOR F-14 FIGHTER AIRCRAFT

This section would prohibit the Department of Defense from selling F-14 parts to any entity other than a museum or similar organization in the United States acquiring the parts to preserve aircraft for historical purposes. This section would also prohibit the granting of an export license for any F-14 part.

This section would require the Secretary of Defense to maintain, at a minimum, the current space-based nuclear detection capability in the future planning for national space systems. The committee notes that the Air Force was considering removing the national nuclear detection system payload from a future satellite development. This future satellite system will replace the existing satellite system that carries the nuclear detection capability. The committee strongly supports the need for space-based nuclear detection, and this section would require the Department of Defense to maintain it, at least at the current capability, in the future.

This section would modify existing authority governing the overall number of national guard civil support teams (CSTs), increasing from 55 to 57 the total number of teams. This section would modify section 1403 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314) and would authorize an additional team in Florida and New York.

(1) The Nation extends its gratitude to the military personnel who guard and interrogate some of the world's most dangerous men every day at Naval Station, Guantanamo Bay, Cuba;

(2) The international community, in general, and in particular, the home countries of the detainees who remain in detention despite having been ordered released by a Department of Defense administrative review board, should work with the Department of Defense to facilitate and expedite the repatriation of such detainees;

(3) Detainees at Guantanamo Bay, to the maximum extent possible, should be charged and expeditiously prosecuted for crimes committed against the United States; and

(4) Operations at Guantanamo Bay should be carried out in a way that upholds the national interest and core values of the American people.

SECTION 1054--REPEAL OF PROVISIONS IN SECTION 1076 OF PUBLIC LAW 109-364 RELATING TO USE OF ARMED FORCES IN MAJOR PUBLIC EMERGENCIES

This section would amend section 333 of title 10, United States Code, and essentially repeal recent modifications to that section, as contained in section 1076 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364). This section would reverse the expansion of executive authority granted in Public Law 109-364 with respect to the employment of active and reserve military personnel during domestic response incidents. This section would return to state governors ultimate law enforcement authority in the wake of public, natural, or terrorist-related domestic emergencies.

TITLE XI--CIVILIAN PERSONNEL MATTERS

ITEM OF SPECIAL INTEREST

INCENTIVES FOR DEPLOYED CIVILIANS

The Department of Defense (DOD) provides various special pay and benefits to its deployed federal civilian personnel (including non-appropriated fund instrumentality employees), which differ in type and/or amount from those provided to deployed military personnel. A September, 2006, General Accountability Office report (GAO-06-1085) highlighted these special provisions, which include post differential, and danger pay. While federal civilian employees are entitled also to premium pay, they do not receive a family separation allowance and a combat zone tax exclusion as do deployed military service members. The committee is aware that attracting federal civilian personnel to deploy in contingency operations may be difficult at a time when DOD personnel are undertaking a range of critical missions in support of ongoing military operations. The committee directs the Secretary of Defense to review the benefits available to deployed federal civilian personnel to determine if such benefits provide adequate incentives to encourage federal civilian personnel to volunteer for a deployed position. This review shall also encompass a discussion of survivor benefits, to include matters related to the life insurance coverage, as well as relocation allowances for families of federal civilian personnel who die while deployed in support of military forces. The committee directs the Secretary of Defense to submit a report of the findings, along with recommendations including any necessary statutory changes, to the congressional defense committees by March 30, 2008.

LEGISLATIVE PROVISIONS

SUBTITLE A--FINANCIAL MATTERS

This section would authorize compensation for hours spent traveling back from an administratively uncontrollable event for Federal Wage System (FWS) employees who are exempt from the overtime pay provisions of the Fair Labor Standards Act (FLSA) of 1938 in sections 201-219 of title 29, United States Code. This change would provide for the same treatment of General Schedule and FWS employees when they make the same trip.

Section 5544 of title 5, United States Code, addresses circumstances under which wage board employees who are exempt from the FLSA are paid overtime. Under section 5544, an employee who must travel in order to perform work that cannot be scheduled or controlled administratively is paid for time spent traveling to the temporary duty station to perform the work. Time spent traveling from the temporary duty station back to the official duty station is not compensated because the return leg of the journey can be scheduled or controlled administratively. However, return travel often is not scheduled during working hours because some of the flights are not scheduled frequently and some parts of the world to which these employees must travel do not have adequate facilities for overnight stays. This section would make both the trip to the temporary duty station and the return trip compensable.

SECTION 1102--SPECIAL BENEFITS FOR CIVILIAN EMPLOYEES ASSIGNED ON DEPLOYMENT TEMPORARY CHANGE OF STATION

This section would amend subchapter II of title 5, United States Code, to add a new section to authorize that civilians be provided billeting, rations, and storage of a personal vehicle during an extended contingency operations deployment. The ongoing contingency operations have necessitated longer deployments for Department of Defense civilian employees. To support these contingency operations, the Department has sent its civilian employees on temporary duty (TDY) for up to 180 days. When the contingency deployments are for greater periods of time than 180 days, civilian employees deploy on temporary change of station (TCS). When an employee deploys on TCS, the employee's pay and allowances are no longer determined on the basis of the employee's permanent duty station. As a result, employees who previously deployed to areas of contingency operations on TDY lose entitlement to certain payments and allowances. This change would ensure no loss of these payments and allowances.

SECTION 1103--ACCUMULATION OF ANNUAL LEAVE BY SENIOR LEVEL EMPLOYEES

This section would allow senior-level employees, defined as those who are classified above the GS-15 level, to receive the same flexible annual leave accrual currently authorized for members of the Senior Executive Service, the Defense Intelligence Senior Executive Service, and certain other senior government officials.

SECTION 1104--TRAVEL COMPENSATION FOR WAGE GRADE PERSONNEL

This section would amend section 5550b of title 5, United States Code, to allow Prevailing Rate employees to receive compensatory time off for each hour spent on official travel which is not otherwise compensable. This change would provide for the same treatment of General Schedule and Prevailing Rate employees for overtime pay related to official travel.

SECTION 1105--DEATH GRATUITY AUTHORIZED FOR FEDERAL EMPLOYEES

This section would provide a death gratuity of $0.1 million to Department of Defense (DOD) civilian employees who died as a result of wounds, injuries, or illness while on duty in a combat zone or from a terrorist incident. This section would apply retroactively in the case of a DOD civilian employee whose death occurred on or after October 7, 2001, from wounds, injuries, or illness incurred in the performance of their duty in the theater of Operation Iraqi Freedom or Operation Enduring Freedom. Section 664 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) increased the death gratuity payable to military members from $12,000 to $0.1 million. This section would provide a similar benefit to DOD civilians whose death is directly the result of their deployment to a combat zone.

DOD civilian employees perform essential functions in combat zones, and may face many of the same risks as their military colleagues. Death benefits for such employees are currently limited to $10,000, including funeral and burial costs. The committee believes that, as a matter of equity, DOD civilian and military personnel should be entitled to comparable benefits in the case of death as a result of accepting assignment in combat areas.

SECTION 1106-MODIFICATIONS TO THE NATIONAL SECURITY PERSONNEL SYSTEM

This section would amend section 9902 of title 5, United States Code, to restore employee collective bargaining rights, a performance appraisal system, and access to an appeals process that have long been part of the civil service system, but are not available to individuals currently participating in the Department of Defense National Security Personnel System (NSPS). This section also would guarantee veterans' preference in hiring, as well as when the agency undertakes a reduction-in-force action. Finally, this section would add procedural safeguards for pay for performance and would extend the exemption from NSPS to defense laboratories until 2011.

The committee is concerned that the implementing regulations, issued in November, 2005, exceeded congressional intent, especially with respect to limitations on employee bargaining rights. Furthermore, the committee notes that the Government Accountability Office issued several reports highlighting areas of concern, including the need for the Department to better define elements of the system, and made recommendations for continuing employee involvement in the implementation process. In addition, at a March, 2007, hearing of the Subcommittee on Readiness, several witnesses raised issues related to implementing the NSPS pay-for-performance system.

This section would allow the Secretary of Defense to implement a modified NSPS pay-for-performance system that complies with many of the procedures provided in section 4703 of title 5, United States Code. That section establishes guidelines for civilian personnel demonstration projects. The committee notes that use of demonstration program authorities in title 5, United States Code, have been a successful model at Department of Defense laboratories for providing flexibility in personnel systems, while protecting employee rights. Thus, as recommended by the committee, for employees to be included in a pay-for-performance system, an agreement must be negotiated between the Department and the employees' exclusive representatives. In addition, the modified NSPS pay-for-performance system would guarantee that employees continue to receive their annual nationwide and locality adjustments. The committee makes this recommendation out of concern that under the current implementing regulations for NSPS, it is possible for employees to receive a bonus, but not receive a nationwide or locality adjustment. Such a practice affects the employee's base pay, which is used for calculating retirement benefits.

SECTION 1107--ANNUITY COMMENCING DATES

This section would allow federal retirement annuities to commence on either the day after retirement or the day after age and service requirements are met. The current deviations in annuity commencement dates between retirement systems results in a cumbersome administrative human resources problem. The committee believes this change would resolve that problem.

SECTION 1108--FLEXIBILITY IN SETTING PAY FOR EMPLOYEES WHO MOVE FROM A DEPARTMENT OF DEFENSE OR COAST GUARD NONAPPROPRIATED FUND INSTRUMENTALITY TO A POSITION IN THE GENERAL SCHEDULE PAY SYSTEM

This section would authorize an employee of a Department of Defense or U.S. Coast Guard nonappropriated fund instrumentality to voluntarily transfer, without a break in service of more than three days, to a federal civil service appropriated fund position at the lowest pay step within the appropriate grade that equals or exceeds the employee's previous pay level. This section would also establish the employee's new pay level as the maximum rate in the appropriate grade if the employee's previous rate of pay exceeds that pay level.

SECTION 1109--TRANSPORTATION OF DEPENDENTS, HOUSEHOLD EFFECTS AND PERSONAL PROPERTY TO FORMER HOME FOLLOWING DEATH OF FEDERAL EMPLOYEE WHERE DEATH RESULTED FROM DISEASE OR INJURY INCURRED IN A COMBAT ZONE

This section would allow the dependents of a federal civilian employee who dies while on deployment in a combat zone to be relocated to their home of record at the government's expense, whether the dependents are living overseas or in the continental United States. Current law, section 5742 of title 5, United States Code, makes the payment of such expenses available only to those dependents living overseas or in Alaska. This section would expand the eligibility to dependents living in the continental United States if the federal civilian employee died as a result of disease or injury while working in a combat zone. This section would apply only to federal civilian employees who have signed an emergency mobility agreement.

SECTION 1110--USE OF LEAVE TRANSFER PROGRAM BY WOUNDED VETERANS WHO ARE FEDERAL EMPLOYEES

This section would amend section 6333 of title 5, United States Code, to allow federal employees, who sustain a combat-related injury while on active duty, in both the National Guard or the Reserves, to accept donated leave without having to deplete their own leave allocations. The section would allow employees to accept donated leave while undergoing medical treatment for the disability, but in no case for more than five years.

SECTION 1111--REQUIREMENT FOR FULL IMPLEMENTATION OF PERSONNEL DEMONSTRATION PROJECT

This section would require the Secretary of Defense to fully utilize and implement the authorities provided under section 342 (Extension and Expansion of Authority to Conduct Personnel Demonstration Projects) of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337) to carry out flexible personnel demonstration projects at Department of Defense laboratories exempt from the National Security Personnel System (NSPS) by section 9902(c) of title 5, United States Code. This section would also allow other defense laboratories to utilize the authorities granted by section 342 and would exempt them from NSPS. The section would require an annual report from the Department on the demonstration projects.

TITLE XII--MATTERS RELATING TO OTHER NATIONS

ITEMS OF SPECIAL INTEREST

ACCURACY OF TRACKING PERSONNEL DATA ON IRAQI SECURITY FORCES

The committee is concerned about the lack of accurate personnel accountability data and reporting procedures for the Iraqi Security Forces (both Ministry of Defense and Ministry of Interior forces.) For example, according to the Department of Defense, `there are currently no reliable data to indicate how many' of the initial 188,300 Objective Civil Security Force (OCSF) are still serving with the Ministry of Interior. Accurate data regarding who is serving in the Iraqi Security Forces, whether they have been adequately trained, where they are assigned, and whether they continue to serve is essential to measuring and reporting the progress of the Iraqi Security Forces. The committee directs that, within 90 days of enactment of this Act, and every 6 months thereafter, for the duration of the Iraqi training mission, the Secretary of Defense report to the congressional defense committees (1) what type of personnel accountability data is available for the Iraqi Security Forces, including information regarding the hiring, training, and assignment, of security personnel and present-for-duty rates; (2) what the source of that information is, and how it is updated; and (3) what measures are being implemented by the Department of Defense, in partnership with the Government of Iraq, to address any gaps in personnel accountability and reporting for the Iraqi Security Forces. The committee directs that this reporting requirement shall terminate upon certification by the Secretary of Defense to the congressional defense committees that US forces have completed their training, equipping, and support mission, as it pertains to the Iraqi Security Forces.

CONTRIBUTIONS OF THE NORTH ATLANTIC TREATY ORGANIZATION'S INTERNATIONAL SECURITY ASSISTANCE FORCE TO SECURITY AND STABILITY IN AFGHANISTAN

The committee emphasizes that countries participating in the North Atlantic Treaty Organization's (NATO) International Security Assistances Force (ISAF) must significantly increase their contributions to security and stability in Afghanistan, including contributions to the following: military operations by increasing troop numbers and removing restrictive national caveats that limit operations; efforts to strengthen the resources, capabilities, and effectiveness of the Afghanistan National Security Forces' (ANSF) capacity-building; counter-narcotics efforts; and reconstruction and development.

The committee notes that in response to the terrorist attacks of September 11, 2001, NATO countries contributing to ISAF invoked Article 5 of NATO's founding charter, which committed these countries to collective defense. Since that time, NATO-ISAF countries have made numerous commitments at NATO summits in Prague, Czech Republic, 2002; in Istanbul, Turkey, 2004; and in Riga, Spain, 2006, to contribute to Afghanistan's security and stability. However, many of these commitments remain unfulfilled. The committee believes that although some NATO-ISAF countries have made important contributions in Afghanistan, and the military forces of some NATO-ISAF countries have been involved in heavy combat and endured losses, NATO-ISAF countries must do much more to ensure sustainable long-term progress in Afghanistan, and to achieve a more equitable burden-sharing arrangement among these countries. This is not only critical to security and stability in Afghanistan but to the future of the NATO alliance.

The committee also believes that the United States must strengthen its efforts to increase contributions from NATO-ISAF countries to security and stability in Afghanistan. The committee strongly encourages efforts including: (1) effective U.S. leadership, policy direction, and coordination for all relevant U.S. activities; (2) an inter-agency review of commitments and contributions from NATO-ISAF countries, including contributions to military operations, ANSF capacity-building, counter-narcotics efforts, and reconstruction and development; (3) regular bilateral and multilateral consultations with governments of NATO-ISAF countries on commitments and contributions; and (4) measures and mechanisms for increasing contributions from NATO-ISAF countries, and for achieving a more equitable burden-sharing arrangement among NATO-ISAF countries for such contributions.

IRAQI WMD SCIENTISTS

The committee notes that although stocks of recently manufactured Weapons of Mass Destruction were not discovered in the wake of Operation Iraqi Freedom, Iraq did maintain research and development activities on chemical, biological, and nuclear weapons. The committee is concerned that the scientists and technical experts who participated in these activities may have left Iraq and could be contributing to the weapons programs of other countries or entities. Therefore, the committee directs the Director of National Intelligence, in coordination with the Secretary of Defense, to submit a classified report within 180 days of enactment of this Act, including the location and employment status of those scientists and technical personnel critical to the Iraqi research programs, the efforts made to locate those critical personnel whose location and status are currently unknown, and any efforts undertaken by the Department of Defense to encourage weapons scientists and technical personnel to remain in Iraq and work on behalf of the people and Government of Iraq. The report shall also include an assessment of any proliferation risk posed by the Iraqi scientific and technical personnel, particularly those who cannot be located.

REPORT ON CERTAIN COOPERATIVE ACTIVITIES INVOLVING THE UNITED STATES AND INDIA

The committee notes that given the President's proposed deepening of U.S.-India nuclear cooperation, in the committee report (H. Report 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007, the committee directed the Secretary of Energy, in coordination with the Secretary of Defense and Secretary of State, to submit to the Senate Committee on Armed Services, the House Committee on Armed Services, the Senate Committee on Foreign Relations, and the House Committee on Foreign Affairs, by February 1, 2007, a report on the Department of Energy's (DOE's) current and planned cooperative activities involving the United States and India to enhance India's export control system and nuclear safeguards and to prevent theft or other illicit transfer of nuclear materials and technologies. The committee specified that the report shall also describe how the Department of Energy coordinates these U.S.-India nuclear safeguards activities with similar efforts of the Department of Defense and the Department of State; provide an assessment of the limits and vulnerabilities in India's current export control system and other safeguards as they relate to nuclear materials; and identify possible areas for expanded U.S.-India nuclear safeguards activities.

On April 18, 2007, DOE's Deputy Administrator for Defense Nuclear Nonproliferation delivered a letter to the committee regarding this report. The letter conveys that although the Department of Energy is undertaking certain U.S.-India nuclear safeguards activities, such activities are limited and still evolving. Although the committee appreciates DOE's correspondence, it is not a substitute for the required report. The committee emphasizes the importance of this report given the recent enactment of the Henry J. Hyde United States and India Nuclear Cooperation Act of 2006 (Public Law 109-401) that the President signed into law on December 18, 2006, and the steps required by Congress under this law before any such cooperation may occur. The committee expects that the report will be delivered to the relevant committees at the earliest possible date.

REPORT ON COMBATANT COMMANDERS INITIATIVE FUND

Over the past several years, Department of Defense officials have repeatedly requested authority for the Department to respond to urgent and unanticipated humanitarian relief and reconstruction requirements in developing countries where U.S. forces are operating. Those officials have argued that the Commanders' Emergency Response Program, which is a temporary program that allows U.S. military commanders in Afghanistan and Iraq to provide for such requirements, would be a useful tool for all combatant commanders, regardless of geography.

The committee notes that Congress provided authority for the Commanders' Emergency Response Program specifically for the special circumstances within Afghanistan and Iraq and highlights that the Department already has several legislative authorities, which would allow military commanders to address the needs of local populations in nations in which U.S. forces are operating. For example, both Chapter 20 and section 2561 of title 10, United States Code, provide the Department with significant authority to provide humanitarian, civic, and other assistance to foreign countries. The codified language does not impose unnecessary bureaucratic obstacles to the timely use of these authorities.

The committee also highlights that section 166a of title 10, United States Code, outlines authority for a Combatant Commanders Initiative Fund. This authority allows the Chairman of the Joint Chiefs to Staff to provide funds to combatant commanders for a range of activities, including `humanitarian and civic assistance (to include urgent and unanticipated humanitarian relief and reconstruction requirements.)' Again, the codified language does not impose unnecessary bureaucratic obstacles to the timely use of this authority. In the conference report (H. Rept. 109-702), which accompanied the John Warner National Defense Authorization Act for Fiscal Year 2007, the conferees urged the Department of Defense to develop guidance for the use of this authority to ensure that military commanders could use it quickly and without bureaucratic delay in urgent situations.

The committee directs the Secretary of Defense to submit, by February 1, 2008, a report to the Senate Committee on Armed Services and the House Committee on Armed Services on the guidance and procedures in place at the Department of Defense to implement that Combatant Commanders Initiative Fund authority. In addition to describing the bureaucratic processes, this report shall also identify the activities conducted under this authority during fiscal years 2006 and 2007, the political-military and military objectives of those activities, and any related future activities that may build upon those activities. The report shall also include a description of how the Department of Defense is ensuring that commanders on the ground have sufficient access to these funds in urgent, unanticipated situations.

REPORT ON FEASIBILITY AND ADVISABILITY OF A STABILITY OPERATIONS FELLOWSHIP PROGRAM

The committee directs the Secretary of Defense to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services by December 1, 2007, on the feasibility and advisability of establishing and carrying out a program to pay any costs associated with the education and training in stability operations of foreign military officers and other foreign defense and security officials from a developing country at military or civilian educational institutions, regional centers, conferences, seminars, or other training programs, including costs of transportation and travel and subsistence costs. For purposes of this report, the term `stability operations' means military and civilian activities conducted to maintain or re-establish a safe and secure environment and to provide essential governmental services, emergency infrastructure reconstruction, and humanitarian relief.

The report shall include the following:

(1) An overview of the proposed scope of the envisioned program.

(2) A description of the target audience of foreign military and civilian officials to participate in the program.

(3) An explanation of how the program would relate to other Department of Defense international training and education programs, including the Regional Defense Combating Terrorism Fellowship Program and the Regional Centers for Security Studies Program.

(4) An evaluation of how the program could complement rather than duplicate existing Department of State authorities, including `International Military Education and Training' and `Foreign Military Financing' program authorities.

(5) A description of how the Department of Defense would structure policy oversight and management of the program, including coordination with the Department of State with respect to human rights vetting.

(6) An estimation of the annual costs to implement the program and an assessment of the return on investment in the program for the United States Government, geographic combatant commanders, and United States military forces.

REPORT ON USE OF LIAISON AUTHORITIES

The committee directs the Secretary of Defense to submit to the Senate Committee on Armed Services and the House Committee on Armed Services a report by March 1, 2008, providing an assessment of the implementation of section 1051a of title 10, United States Code. That assessment shall include a statement of the cost to the Department of Defense of the use of the authority provided by that section, and a summary of activities carried out under the authority provided by that section, including the number of liaison officers for whom administrative services and support or expenses were provided under that authority and their countries of origin, and the type of services, support, and expenses provided.

TRAIN AND EQUIP AUTHORITIES

Section 1206 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) required the President to submit to Congress a report on the ability of the Department of Defense (DOD) and the Department of State (DOS) to conduct foreign military assistance programs. The committee expresses strong concern that Congress has not yet received that report, which was due by January 6, 2007. Moreover, Congress has not received any official indication that this required report will be forthcoming any time soon.

In recent years, the committee has considered the tasks associated with building the military capacity and capabilities of foreign partners. This is an area which has historically been a DOS responsibility and in which the Department of Defense has expressed strong interest. As a result of this interest, Congress provided the Department of Defense with limited authority to conduct programs to train and equip foreign military forces, while continuing to encourage the Department of State to develop or modify the resident capability to handle some of these tasks.

Collectively, these authorities are referred to by the general term `train and equip' and are exemplified by section 1206 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) and section 1206 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364). As stated clearly in the conference reports (H. Rept. 109-360 and H. Rept. 109-702) accompanying these laws, the intent of these authorities was to provide the basis of a pilot program, the results of which Congress would take under advisement when considering extending or expanding `train and equip' authorities in the future.

Additionally, Congress recognized that there appeared to be vulnerabilities in existing laws relating to foreign military assistance, including but not limited to the Foreign Assistance Act of 1961 (Public Law 87-195) and the Arms Export Control Act (22 U.S.C. 2751 et seq). This recognition was an additional underlying reason behind the requirement for the Presidential report. The accompanying conference report (H. Rept. 109-360) noted that this report would be `an important factor in the conferees' future consideration of' any future DOD authority to provide foreign assistance.

In the last two years, Congress has clearly and strongly discouraged further legislative proposals to expand or make permanent DOD's `train and equip' authorities in the absence of this required report and an established track record of success. The committee has serious concerns that the Administration has not heeded this advice and, in failing to comply with existing law, has deprived the committee of the full materials needed to make an informed judgment on the longer-term future of those proposals.

UNITED STATES' CONTRIBUTIONS TO THE NORTH ATLANTIC TREATY ORGANIZATION-LED INTERNATIONAL SECURITY ASSISTANCE FORCE

The committee recognizes that most U.S. forces deploying to Afghanistan do so as an important part of U.S. voluntary national contributions to the North Atlantic Treaty Organization (NATO)-led International Security Assistance Force (ISAF-X). The committee further recognizes that U.S. Joint Forces Command has developed advanced capabilities, including innovative technologies that may enhance battle management, command and control, intelligence analysis, and communications. Many of these capabilities would be useful to the U.S. forces assigned to the NATO-led force in Afghanistan, including modeling and simulation tools and the ability to conduct Operational Net Assessments. The committee urges the Secretary of Defense, to the maximum extent practicable, provide these sorts of capabilities as part of U.S. contributions to the NATO-led force in Afghanistan. Furthermore, to ensure fielded forces sustain these capabilities, appropriate training support should be made available, on a temporary basis, as required by the Commander, ISAF-X.

LEGISLATIVE PROVISIONS

SUBTITLE A--ASSISTANCE AND TRAINING

SECTION 1201--MILITARY-TO-MILITARY CONTACTS AND COMPARABLE ACTIVITIES

This section would allow the Secretary of Defense to waive the reciprocity requirements for personnel exchange programs with foreign governments when it is in the interests of the United States.

SECTION 1202--AUTHORITY FOR SUPPORT OF MILITARY OPERATIONS TO COMBAT TERRORISM

This section would authorize an extension of existing authority for the Secretary of Defense to provide to foreign forces, irregular forces, groups, or individuals a total amount of $25.0 million in each fiscal year through 2010 when such recipients are facilitating or acting in support of operations conducted by U.S. Special Operations Forces. To address committee concerns about past reporting practices associated with this program, this section would include a requirement for more detail in the annual overview and would require the Secretary to submit the report to the congressional defense subcommittees within 120 days of the end of each fiscal year. The committee expects the annual review to include specific detail on cost and performance of each activity as well as a clear reference to each event approved during the preceding fiscal year. This section would not constitute authority to conduct any covert action.

This section would provide authority for the Secretary of Defense to pay medical expenses incurred by a liaison officer from a developing country who is temporarily assigned to a headquarters of a combatant command, component command, or subordinate operational command in connection with the planning for, or conduct of, a military operation. This authority would only be available if the developing country has not entered into a reciprocal health care agreement with the Department of Defense. This section would also authorize the Secretary to pay a liaison officer's temporary duty expenses when the liaison officer is temporarily assigned to the headquarters of a combatant command, component command, or subordinate operational command, and is requested by the commander to travel in support of the United States. In addition, this section would expand the category of liaison officers covered by the statute to include liaison officers from nations involved in military operations with the United States and assigned to combatant commands, component commands, or subordinate operational commands of the United States in connection with the planning for, or conduct of, such military operations. Finally, this section would make permanent the Secretary's authority to pay the expenses of the covered liaison officers supporting United States military operations.

SECTION 1204--EXTENSION AND EXPANSION OF DEPARTMENT OF DEFENSE AUTHORITY TO PARTICIPATE IN MULTINATIONAL MILITARY CENTERS OF EXCELLENCE

This section would extend the authority granted by section 1205 of the John Warner National Defense Authorization for Fiscal Year 2007 (Public Law 109-364) for an additional year, through fiscal year 2008, for the Secretary of Defense to enter into agreements with North Atlantic Treaty Organization (NATO) alliance members, major non-NATO allies, and other friendly foreign countries to participate in organizations that are centers of excellence established to enhance interoperability, develop military doctrine, and develop and test new concepts. This section also would clarify that the centers of excellence do not have to be approved and accredited by NATO, and it would increase the authorization for expenditures for the U.S. share of operating expenses from $3.0 million to $5.0 million.

This section would amend subsection (a) of section 1202 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3455-3456) to extend the Commanders' Emergency Response Program through fiscal year 2009.

SECTION 1206--EXPANSION OF PROGRAM TO BUILD THE CAPACITY OF FOREIGN MILITARY FORCES TO INCLUDE PAKISTAN'S OTHER SECURITY FORCES

This section would amend the authority of the Secretary of Defense, with the concurrence of the Secretary of State, to require programs building the capacity of foreign military forces to include certain other security forces of the country of Pakistan, when those forces would be used specifically for counter-terrorism operations, and subject to a 30-day congressional notification requirement. This authority was first provided under section 1206 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) and extended in section 1206 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364).

SECTION 1207--AUTHORITY TO PROVIDE ASSISTANCE TO FOREIGN NATIONS TO ASSIST IN RECOVERY AND ACCOUNTING ACTIVITIES FOR MISSING UNITED STATES GOVERNMENT PERSONNEL

This section would authorize the Secretary of Defense to provide equipment, supplies, services, training, and funding to foreign nations to allow them to assist the U.S. Government to recover the remains of U.S. personnel.

SECTION 1208--AUTHORITY TO PROVIDE AUTOMATIC IDENTIFICATION SYSTEM DATA ON MARITIME SHIPPING TO FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS

This section would permit the Secretary of Defense to authorize the secretaries of the military departments and the combatant commanders to provide foreign nations and international organizations with information on the location of merchant vessels.

SECTION 1209--REPORT ON FOREIGN ASSISTANCE-RELATED PROGRAMS, PROJECTS, AND ACTIVITIES CARRIED OUT BY THE DEPARTMENT OF DEFENSE

This section would require the Secretary of Defense to submit to Congress a report describing all the foreign assistance-related programs, projects, and activities carried out by the Department of Defense during the prior fiscal year. This report would be submitted within 180 days after the date of enactment of this Act.

SUBTITLE B--MATTERS RELATING TO IRAQ

SECTION 1221--MODIFICATION OF AUTHORITIES RELATING TO THE SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION

This section would extend the responsibilities of the Special Inspector General for Iraq Reconstruction by including all reconstruction funding provided regardless of source or fiscal year. Currently, authority relating to certain reconstruction funds provided for Iraq in fiscal year 2005 is unclear, and as of the date of this report, authority does not extend to any reconstruction funding for fiscal year 2007 or beyond.

SECTION 1222--CONTINUATION OF PROHIBITION ON ESTABLISHMENT OF PERMANENT MILITARY INSTALLATIONS IN IRAQ OR UNITED STATES CONTROL OVER OIL RESOURCES OF IRAQ

This section would make permanent section 1519 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) that prohibited the establishment of permanent U.S. military bases in Iraq and forbade the exercise of U.S. economic control over the oil resources of Iraq.

SECTION 1223--REPORT ON DEPARTMENT OF DEFENSE EFFORTS TO BUILD THE CAPACITY OF THE GOVERNMENT OF IRAQ TO CARRY OUT RECONSTRUCTION ACTIVITIES IN IRAQ

This section would require the Secretary of Defense to submit a report to Congress on actions taken by the Department of Defense to enhance the ability of the Government of Iraq to better assess reconstruction needs and to enter into and oversee reconstruction contracts.

SECTION 1224--REPORT ON IMPLEMENTATION OF MULTI-NATIONAL FORCES-IRAQ/UNITED STATES EMBASSY BAGHDAD JOINT CAMPAIGN PLAN AND EFFORTS TO ACHIEVE POLITICAL REFORM IN IRAQ

This section would require the Secretary of Defense in coordination with the Secretary of State to submit a report detailing the implementation of the Multi-National Forces--Iraq/United States Embassy Baghdad Joint Campaign Plan for Iraq (hereafter the Joint Campaign Plan) since January 1, 2007, and efforts to achieve political reconciliation made by the Iraqi government, to the congressional defense committees, as well as the Senate Committee on Foreign Affairs and the House Committee on Foreign Relations by September 30, 2007, and every six months thereafter. This section would mandate that the secretaries provide the assessments of the Commander, Multi-National Forces--Iraq and the U. S. Ambassador to Iraq as part of this report. The report would include a detailed description of the goals and measures of the Joint Campaign Plan and assessments of the current situation in relation to those goals; efforts of the Iraqi Government to achieve political reconciliation; an assessment of security across Iraq; and the status of the training and capability of Iraqi security forces. Based on the information contained in this report, this section would require the Secretary of Defense to include his best assessment as to the force levels required in Iraq for the six months beginning October 1, 2007, the missions to be undertaken by those forces, and the incremental costs of proposed changes to currently planned force levels, and shall lay out the range of contingency plans under consideration for American force levels or changes in mission during that period.

The committee remains deeply concerned about the conflict in Iraq--its sectarian component; the willingness and ability of the Iraqis to take on greater responsibility for their security and the political reconciliation that will reduce support for the insurgency; and its impact on the readiness of the American military. In undertaking an increase in forces in January, President Bush indicated that America's commitment was not open-ended, and that if the Iraqi Government did not follow through on promises that have been made, it would lose the support of the American people. Similarly, Secretary of Defense Robert Gates, at the start of the campaign, indicated that American patience would not be infinite with this campaign. More recently, the new Commander of Multinational Force--Iraq, General David Petraeus, remarked that the campaign needed to be assessed carefully and that he, along with Ambassador Ryan Crocker, would be delivering that assessment in September. The committee believes that Congress needs the same frank assessment to understand and consider any further adjustments that the Administration may wish to make to force levels or to shifts in mission on the ground and to provide the basis for any potential future congressional action regarding the conduct of the war. The committee trusts the commanders in theater to provide their best professional judgment to inform our understanding of the status of the U.S. mission in Iraq and the necessary force levels going forward.

SECTION 1225--REPORT ON TRAINING OF THE IRAQI SECURITY FORCES

This section would require that the Secretary of Defense submit a report within 90 days of enactment of this Act and every three months thereafter to the Senate Committee on Armed Services, the House Committee on Armed Services, the Senate Committee on Foreign Relations, and the House Committee on Foreign Affairs on the training and capability of Iraqi Security Forces.

SECTION 1226--SENSE OF CONGRESS ON RESPONSIBILITIES OF THE IRAQI COUNCIL OF REPRESENTATIVES TO ENACT LAWS TO ACHIEVE POLITICAL REFORM AND DIMINISH SUPPORT FOR THE INSURGENCY IN IRAQ

This section would express a sense of Congress that the Iraqi Council of Representatives should not recess for an extended period of time without making substantial progress in passing laws designed to further national reconciliation. The committee notes that General David Petraeus, the Commander, Multi-National Forces--Iraq, has commented that a political resolution is necessary in Iraq to end the insurgency. The committee is deeply concerned that the Iraqi Council of Representatives has been slow to pass measures designed to further national reconciliation and is instead considering adjourning for an extended summer recess. The committee hopes that the Iraqi Council of Representatives will postpone such a recess until after substantial progress is made toward passing the laws mentioned in the resolution that will move Iraqi society closer to reconciliation.

SUBTITLE C--MATTERS RELATING TO AFGHANISTAN

This section would establish the Office of the Special Inspector General for Afghanistan Reconstruction, in order to provide independent and objective oversight and a transparent and reliable source of information relating to the programs and operations funded by the Department of Defense (DOD) for reconstruction of Afghanistan.

The head of the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR) would be appointed by the President within 30 days after the enactment of this Act. This section would require SIGAR to report directly to and be under the supervision of the Secretary of Defense. This section would also require SIGAR to appoint an Assistant Inspector General for Auditing and an Assistant Inspector General for Investigations. SIGAR's duties would include oversight and accounting of the obligation and expenditure of DOD funds from the Afghanistan Security Forces Fund, the Commanders' Emergency Response Program and any other sources of DOD funds for the reconstruction of Afghanistan; the monitoring and review of relevant reconstruction activities and contracts and transfers of such funds; and the maintenance of records on the use of such funds. This section would also require the Secretary of Defense to provide SIGAR with adequate office space and resources at DOD locations in Afghanistan.

This section would require SIGAR to submit to the congressional defense committees quarterly and semi-annual reports summarizing SIGAR's activities and the activities under the programs and operations funded by the Department for reconstruction of Afghanistan. Additionally, this section would require Secretary of Defense to submit to the appropriate congressional committees any comments to each quarterly or semi-annual report, within 30 days after receipt by the Secretary of the report. Such reports and comments would be made available to the public in English and any language that SIGAR determines is widely used in Afghanistan.

The Office of the Special Inspector General for Afghanistan Reconstruction would terminate 10 months after 80 percent of DOD funds for the reconstruction of Afghanistan have been expended. Funds appropriated for fiscal year 2008 to the Afghanistan Security Forces Fund would be available to carry out this section, and would remain available until expended.

The committee notes that the President's budget request for funding for reconstruction of Afghanistan is significantly increased in fiscal years 2007 and 2008, especially in the area of security, including a total request of $7.4 billion for the Afghan National Security Forces in fiscal year 2007, and an additional budget request of $2.7 billion for the Afghanistan national Security Forces in fiscal year 2008. The committee believes that reconstruction is critical to sustainable long-term security and stability in Afghanistan, but the effectiveness of provincial reconstruction teams and other reconstruction activities in Afghanistan has been limited and should be significantly improved, in part by additional and more effective oversight relating to such activities.

SECTION 1232--REPORT ON PROGRESS TOWARD SECURITY AND STABILITY IN AFGHANISTAN

This section would require the Secretary of Defense, in coordination with the Secretary of State, the Attorney General, the Administrator of the Drug Enforcement Agency, the Administrator of the United States Agency for International Development, the Secretary of Agriculture, and the head of any other U.S. department or agency involved with activities relating to security and stability in Afghanistan, to submit to the congressional defense committees and to the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs, within 90 days after the enactment of this Act, an unclassified report with a classified annex if necessary, on progress toward security and stability in Afghanistan.

The report would include a description of the strategic direction of U.S. activities relating to security and stability in Afghanistan. The report would also include a separate section containing a comprehensive set of performance indicators and measures of progress toward sustainable long-term security and stability in Afghanistan. The Department of Defense would be required to update the report every 90 days and provide such updates to the same congressional committees receiving the initial report.

SECTION 1233--REPORT ON PROGRESS OF THE DEPARTMENT OF DEFENSE'S COUNTER-NARCOTICS PROGRAMS FOR AFGHANISTAN

This section would require the Secretary of Defense to submit to Congress, within 90 days after the enactment of this Act, an unclassified report with a classified annex, if necessary, on the progress of the Department of Defense's programs and activities relating to counter-narcotics efforts in Afghanistan. The report would include a description of the strategic direction of the Department's programs and activities, and also contain a comprehensive set of performance indicators and measures of progress for the Department's programs and activities.

The Department would be required to provide Congress with updates to the report every 90 days. The Department would be further required to submit the report, and any updates to the report, to Congress concurrently with the report required by section 1232 of this Act.

SECTION 1234--UNITED STATES PLAN FOR SUSTAINING THE AFGHANISTAN NATIONAL SECURITY FORCES

This section would require, within 90 days after the date of the enactment of this Act, the Secretary of Defense, in coordination with the Secretary of State and the U.S. Attorney General, to submit to the congressional defense committees and to the Senate Committee on Foreign Relations, the House Committee on Foreign Affairs, the Senate Committee on the Judiciary, and the House Committee on the Judiciary, a report that sets forth a long-term detailed plan for sustaining the Afghanistan National Army and the Afghanistan National Police of the Afghanistan National Security Assistance Forces (ANSF). This plan would ensure that a strong and fully-capable ANSF will be able to independently and effectively conduct operations and maintain long-term security and stability in Afghanistan.

The plan would include the following: (1) a clear, comprehensive and effective long-term strategy and budget, with defined objectives; (2) a mechanism for tracking funding, including obligations and expenditures, as well as equipment, training and services; (3) a comprehensive set of performance indicators and measures of progress; (4) coordination with all relevant U.S. agencies and departments, as well as countries participating in the North Atlantic Security Organization International Security Force and other international partners; and (5) actions to achieve a number of specific goals, including effective Afghan institutions with fully-capable leadership and staff, particularly a reformed Ministry of Interior, a fully-established Ministry of Defense, and logistics, intelligence, medical and recruiting units.

This section would require the Secretary of Defense to update the plan every 90 days and submit such updates to the same congressional committees receiving the initial report. Further, this section would require the Secretary of Defense to submit the plan and any updates to the plan to the appropriate congressional committees concurrently with the report required by section 1232 of this Act.

SUBTITLE D--OTHER MATTERS

SECTION 1241--COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS: NATO ORGANIZATIONS; ALLIED AND FRIENDLY FOREIGN COUNTRIES

This section would amend section 2350a of title 10, United States Code, to update the term `arms cooperation opportunity document.' This term has been replaced in standard Department of Defense (DOD) usage with the term cooperative opportunities document. This section would also require that a cooperative opportunities document be prepared for all programs undergoing an analysis of alternatives. The current requirement is that cooperative opportunities documents be prepared for all programs with mission need statements. The Department no longer prepares mission need statements.

This section would extend the authorization, modify the reporting requirement, and update the membership of the Counterproliferation Program Review Committee.

The committee is aware that the U.S. Government has made many organizational changes affecting counterproliferation programs since the establishment of the Counterproliferation Program Review Committee in the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160). In addition, the committee recognizes that numerous interagency counterproliferation activities now exist and there is a need for simplification of reporting processes and inclusion of all critical organizations in the reporting process. This section would extend the authorization for the Counterproliferation Program Review Committee by five years to September 30, 2013, change the reporting requirement from annually to biennially, and update government agency membership by changing the intelligence official from the Director of Central Intelligence to the Director of National Intelligence and adding the Secretaries of State, Homeland Security, Health and Human Services, and the Environmental Protection Agency. This section would require the submission of the next report by March 1, 2009.

SECTION 1243--SENSE OF CONGRESS CONCERNING THE WESTERN HEMISPHERE INSTITUTE FOR SECURITY COOPERATION

This section would express the sense of Congress that the Western Hemisphere Institute for Security Cooperation is succeeding in its mission to educate and train certain persons from nations in the western hemisphere and is an invaluable institution that the Department of Defense should continue to use to help foster cooperation and interoperability among the United States military and the militaries of participating nations.

SECTION 1244--SENSE OF CONGRESS CONCERNING THE STRATEGIC MILITARY CAPABILITIES AND INTENTIONS OF THE PEOPLE'S REPUBLIC OF CHINA

This section would express a sense of Congress that United States military warfighting capabilities are potentially threatened by the strategic military capabilities and intentions of the People's Republic of China, and that the Secretary of Defense should expand efforts to develop an accurate assessment of China's military modernization, particularly with respect to China's sea and space-based capabilities.

TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER SOVIET UNION

OVERVIEW

The budget request for the Cooperative Threat Reduction (CTR) Program contained $348.0 million for fiscal year 2008, representing a decrease of $24.1 million from the amount authorized in fiscal year 2007, exclusive of any supplemental funds. This request contained the following decreases: $64.1 million for nuclear weapons storage security in the Russian Federation; and $42.7 million for chemical weapons destruction in Russia. The request also contained the following increases: $0.9 million for strategic offensive arms elimination in Russia; $4.7 million for nuclear weapons transportation security in Russia; $76.0 million for biological threat reduction in the former Soviet Union; $0.5 million for weapons of mass destruction proliferation prevention in the former Soviet Union; and $0.5 million for other assessments and administrative costs.

The committee fully supports the goals of the CTR Program. The committee emphasizes, consistent with the findings of the 9-11 Commission, that the CTR Program is critical to United States national security and must be a top national security priority. The committee is therefore seriously concerned that lack of effective policy guidance and leadership, and programmatic and funding constraints, have limited the progress of the CTR Program in recent years. The committee believes there must be a strong national commitment to reinvigorate the CTR Program, in part through increased funding that will accelerate, expand, and strengthen existing CTR programs and enable the development of new programs and projects.

The committee would authorize $398.0 million, an increase of $50.0 million from the budget request for fiscal year 2008. The committee would authorize such $50.0 million increase to facilitate completion of the Shchuch'ye chemical weapons destruction project; to develop new CTR initiatives; and to increase staff capacity, capabilities, and resources related to such new initiatives. The committee would also specify a number of Department of Defense requirements that reflect the committee's intent to facilitate completion of the Shchuch'ye project, and would require the Secretary of Defense to submit an action plan for the development and implementation of new CTR initiatives.

ITEMS OF SPECIAL INTEREST

SHCHUCH'YE CHEMICAL WEAPONS DESTRUCTION PROJECT

The committee believes that the completion of the Shchuch'ye chemical weapons destruction project is an essential priority for both the national security of the United States, and the integrity and long-term future of the Cooperative Threat Reduction (CTR) Program. The committee is concerned about a number of issues surrounding the project. The project was established in 1991, and since that time the United States, through the CTR Program, has invested nearly $1.0 billion in the project. Of the more than $1.0 billion authorized and appropriated for the project, the Department of Defense (DOD) intends to obligate approximately $25.0 million in remaining prior year funding over the next three years and is not seeking additional funds for fiscal year 2008. Recently, the Department has expended approximately $3.0 million per month on the project.

The committee is not confident that the Department will be able to complete the project with the remaining budget. The total $1.039 billion authorized and appropriated for the project is based on an outdated cost estimate that the Department has used to set its budget for project completion, and does not fully account for the escalating price of Russian Federation labor, steel, concrete, or other project components. Moreover, the project is approximately no more than fifty percent complete.

In sum, the committee is concerned that the DOD's current budget and strategy for the Shchuch'ye project does not reflect the United States' commitment to completing the project. Given these concerns, the committee would authorize $42.7 million for the project, the amount in fiscal year 2007, and would specify a number of DOD requirements in section 1304 of this Act that reflect the committee's intent to facilitate project completion.

LEGISLATIVE PROVISIONS

This section would define the programs and funds that are Cooperative Threat Reduction (CTR) programs and funds as those authorized to be appropriated in section 1301 of this Act and would specify that CTR funds remain available for obligation for three fiscal years.

SECTION 1302--FUNDING ALLOCATIONS

This section would allocate specific amounts for each program element under the Cooperative Threat Reduction CTR Program from within the overall $398.0 million that the committee would authorize for the CTR Program. The allocation under this section reflects a $50.0 million increase from the budget request of $348.0 million for fiscal year 2008, as follows: $42.7 million to facilitate completion of the Shchuch'ye chemical weapons destruction project in Russia; $7.0 million to develop new CTR initiatives that are outside the scope of existing CTR programs and projects; and $0.3 million for other assessments and administrative costs to increase staff capacity, capabilities, and resources related to such new CTR initiatives. This section would also require notification to Congress 30 days before the Secretary of Defense obligates and expends fiscal year 2008 funds for purposes other than those specifically authorized. In addition, this section would provide limited authority to obligate amounts for a program element under the CTR Program in excess of the amount specifically authorized for that purpose.

SECTION 1303--NEW INITIATIVES FOR THE COOPERATIVE THREAT REDUCTION PROGRAM

This section would express the sense of Congress that the Department of Defense should strengthen and expand the Cooperative Threat Reduction (CTR) Program, in part by developing new CTR initiatives, and would specify a number of new initiatives that the Department should consider.

This section would require the Secretary of Defense, within 30 days of the enactment of this Act, to commission a study by the National Academy of Sciences (NAS) to analyze possible options for strengthening and expanding the CTR Program.

This section would further require the Secretary of Defense to submit to the congressional defense committees and to the Senate Committee on Foreign Relations and House Committee on Foreign Affairs, by March 31, 2008, a report on new CTR initiatives. The report would include the results of the NAS study; an assessment of the NAS study; and a specific action plan for the development and implementation of new CTR initiatives and the use of any funds for such initiatives, which would include a discussion of each new CTR initiative set forth in this section and the action plan for implementing the recommendations of the NAS study, if any.

This section would require the Secretary of Defense to notify the congressional defense committees within 30 days of the commencement of negotiations on, or the signing or finalization of, an agreement that would change implementation of the Cooperative Threat Reduction (CTR) Program chemical weapons destruction project located in the area of Shchuch'ye in the Russian Federation (referred to herein as the `project') in any manner inconsistent with the purpose and intent of the amounts authorized and appropriated for the project.

This section would also require the Secretary of Defense to submit a report on the project to the congressional defense committees, within 60 days of the enactment of this Act, which includes a current and detailed cost estimate for completion of the project, and a specific strategic and operating plan for completion of the project. This section would require the Department to supplement the report required under this section with regular bi-monthly briefings to the congressional defense committees on the subject matter of the report.

This section would also prohibit the Secretary of Defense from implementing any agreement described in this section until 90 days after the date on which the Secretary submits to the congressional defense committees the report required by this section, a copy of the signed and finalized agreement, and the Secretary's certification that the agreement:

(1) Describes the respective responsibilities of the Department of Defense and Russia relating to project completion, including the areas of management, oversight, implementation, security, quality assurance, and sustainability;

(4) Ensures the chemical weapons stockpile at the project site is secure.

SECTION 1305--REPEAL OF RESTRICTIONS ON COOPERATIVE THREAT REDUCTION PROGRAM

This section would repeal certain presidential certification requirements relating to assistance to the Russian Federation under the Cooperative Threat Reduction (CTR) Program, and repeal a limitation on the use of CTR funds for chemical weapons destruction in Russia. The committee notes this section is consistent with the recommendations of the 9-11 Commission regarding the need to expand, strengthen, and otherwise fully support the CTR Program and certain other threat reduction and nonproliferation programs.

SECTION 1306--AUTHORITY TO USE COOPERATIVE THREAT REDUCTION FUNDS OUTSIDE THE FORMER SOVIET UNION

This section would modify certain presidential certification and congressional notice requirements and repeal a funding limitation regarding the use of Cooperative Threat Reduction (CTR) funds for programs outside the former Soviet Union, while increasing oversight of such programs. The committee notes this section is consistent with the recommendations of the 9-11 Commission regarding the need to expand, strengthen, and otherwise support the CTR Program and certain other threat reduction and nonproliferation programs.

TITLE XIV--WOUNDED WARRIOR ASSISTANCE

OVERVIEW

The committee continues to be concerned that wounded warriors receive the best care possible. The conditions at the Walter Reed Army Medical Center added a new urgency to the committee's task to develop the legislative remedies needed to address the problems being confronted by wounded warriors and their families. The sections in this title would establish new statutory requirements to provide the people, training, and oversight mechanisms needed to ensure that the nation's wounded warriors receive quality medical care and efficient administrative processing in an environment that reflects the highest quality of life standards. The sections in this title would also set the stage for much needed reform of the administrative processes that will restore member confidence in the integrity and efficiency of the disability evaluation system and begin the process of achieving a truly seamless transition of service members to programs operated by Department of Veterans Affairs.

LEGISLATIVE PROVISIONS

SECTION 1401--DEFINITIONS

This section would define terms used throughout this title.

SUBTITLE A--IMPROVED ASSISTANCE FOR WOUNDED WARRIORS

SECTION 1411--IMPROVEMENTS TO MEDICAL AND DENTAL CARE FOR MEMBERS OF THE ARMED FORCES ASSIGNED TO HOSPITALS IN AN OUTPATIENT STATUS

This section would require the assignment of a medical care case manager and a service member advocate to each service member assigned to a military treatment facility in an outpatient status or other unit designated to manage service members receiving outpatient medical care. This section would specify the duties of medical care case managers and service member advocates, require the development of standardized training curriculums for each, and would limit the number of cases that may be assigned to each. This section would also require the secretary concerned to conduct semiannual surveys of members in an outpatient status to determine the quality of medical care, adequacy of facilities, and effectiveness of disability evaluation systems, and to coordinate the results with installation medical commanders and authorities.

SECTION 1412--ESTABLISHMENT OF A DEPARTMENT OF DEFENSE-WIDE OMBUDSMAN OFFICE

This section would require the Secretary of Defense to establish a Department of Defense (DOD)-wide Ombudsman Office to provide policy guidance to the ombudsman offices in the military departments regarding the information and assistance provided to recovering service members and their families. The DOD-wide Ombudsman Office would also establish accountability standards to ensure the effective operation of the ombudsman offices in the military departments. This section would also require the Secretary of Defense to ensure that all support agencies within the Department and the military departments respond in a timely manner to resolve questions and requests from the DOD-wide Ombudsman Office on behalf of recovering service members.

SECTION 1413--ESTABLISHMENT OF TOLL-FREE HOT LINE FOR REPORTING DEFICIENCIES IN MEDICAL-RELATED SUPPORT FACILITIES AND EXPEDITED RESPONSE TO REPORTS OF DEFICIENCIES

This section would require the establishment of a confidential, toll-free hot line for reporting deficiencies in facilities supporting medical patients and family members. This section would require investigation and formulation of a plan to remediate substantiated complaints within 96 hours, to include relocation of occupants when health and safety standards are violated.

SECTION 1414--NOTIFICATION TO CONGRESS OF HOSPITALIZATION OF COMBAT WOUNDED SERVICE MEMBERS

This section would require the secretaries concerned to notify members of Congress of the admission of a service member who has been evacuated from a theater of combat, with the service member's consent.

SECTION 1415--INDEPENDENT MEDICAL ADVOCATE FOR MEMBERS BEFORE MEDICAL EVALUATION BOARDS

This section would require assignment of independent health care professionals to serve as counselors and advocates for service members being considered by medical evaluation boards.

This section would establish 20 cases as the maximum number that may be assigned to a physical evaluation board liaison officer or an assistant physical evaluation board liaison officer. This section would also require the Secretary of Defense to establish a standard training curriculum for physical evaluation board liaison officers or assistant physical evaluation board liaison officers.

SECTION 1417--STANDARDIZED TRAINING PROGRAM AND CURRICULUM FOR DEPARTMENT OF DEFENSE DISABILITY EVALUATION SYSTEM

This section would require the Secretary of Defense to establish a standardized training program and curriculum for persons involved in the disability evaluation system to include commanders, enlisted supervisors, health care professionals, and other persons with administrative, professional, or technical responsibilities in the disability evaluation system.

SECTION 1418--IMPROVED TRAINING FOR HEALTH CARE PROFESSIONALS, MEDICAL CARE CASE MANAGERS, AND SERVICE MEMBER ADVOCATES ON PARTICULAR CONDITIONS OF RECOVERING SERVICE MEMBERS

This section would require the Secretary of Defense to annually recommend improvements to the training of health care professionals, medical care case managers, and service member advocates to increase their effectiveness in assisting recovering wounded warriors. This section would, at a minimum, require the Secretary to make recommendations about improving training in the identification of post-traumatic stress disorder, suicidal or homicidal thoughts or ideations, and other behavioral health concerns among recovering members and the timely reporting of observations to the appropriate health care professionals. This section would also require the Secretary to develop a system for tracking the number of notifications provided to health care professionals in accordance with this section.

SECTION 1419--PILOT PROGRAM TO ESTABLISH AN ARMY WOUNDED WARRIOR BATTALION AT AN APPROPRIATE ACTIVE DUTY BASE

This section would require the Secretary of the Army to establish an Army Wounded Warrior Battalion pilot program at an installation with a major medical facility modeled after the Marine Corps Wounded Warrior Regiment program. The Secretary shall report the results of the pilot program within 90 days after completion of a one-year test.

SECTION 1420--CRITERIA FOR REMOVAL OF MEMBER FROM TEMPORARY DISABILITY RETIRED LIST

This section would require that service member medical conditions must be permanent and stable before being removed from the temporary duty retired list.

SECTION 1421--IMPROVED TRANSITION OF MEMBERS OF THE ARMED FORCES TO DEPARTMENT OF VETERANS AFFAIRS UPON RETIREMENT AND SEPARATION

This section would require the Secretary of Defense to provide disabled service members being separated or retired from the armed forces with a written plan for transition of the member to programs operated by the Department of Veterans Affairs and a formal process for the transmittal of records and other information to the Department of Veterans Affairs on or before the date of separation or retirement. This section would require the service member's identification and contact information to be provided to the applicable state agency responsible for veterans' affairs, with the consent of the member. This section would also require the Secretary of Defense and the Secretary of Veterans Affairs to establish a joint separation and evaluation physical examination and a fully interoperable medical information system.

SECTION 1422--ESTABLISHMENT OF MEDICAL SUPPORT FUND FOR SUPPORT OF MEMBERS OF THE ARMED FORCES RETURNING TO MILITARY SERVICE OR CIVILIAN LIFE

This section would authorize a Treasury fund to be used to support programs and activities relating to the medical treatment, care, rehabilitation, recovery, and support of wounded and injured members of the armed forces. This section would authorize $50.0 million from funds authorized within section 421 of this Act, to remain available through September 30, 2008. This section would also require the Secretary of Defense to transfer $10.0 million during fiscal year 2008 to support programs, activities, and facilities associated with the Marine Corps Wounded Warrior Regiment program.

SECTION 1423--OVERSIGHT BOARD FOR WOUNDED WARRIORS

This section would require the establishment of an Oversight Board for Wounded Warriors to give oversight to medical care, quality of life, administrative processing, and family programs supporting wounded warriors and to provide advice and counsel to the Congress and the Department of Defense about how the programs can be made more efficient and effective. The board would be composed of 12 members with knowledge or experience of military health care, disability evaluation systems, or the challenges faced by recovering wounded warriors.

SECTION 1424--OPTION FOR MEMBERS OF RESERVE COMPONENTS TO USE MILITARY MEDICAL TREATMENT FACILITIES CLOSEST TO HOME FOR CERTAIN INJURIES

This section would require the Secretary of Defense to expand the opportunities for recovering service members of the reserve components to receive treatment on an outpatient basis at a military treatment facility closest to the member's home rather than the base from which the member was deployed.

SECTION 1425--PLANS AND RESEARCH FOR REDUCING POST-TRAUMATIC STRESS DISORDER

This section would require the Secretary of Defense to develop a plan to incorporate evidence-based preventive and early-intervention measures, practices, or procedures into pre-deployment training, combat theater operations, and post-deployment service to reduce the likelihood of the occurrence of post-traumatic stress disorder (PTSD) or similar psychopathologies. This section would require the Secretary of Defense to study the feasibility of establishing both a working group and a peer-reviewed research program tasked with researching and developing evidence-based measures, practices, and procedures to reduce the likelihood that personnel serving in combat will develop PTSD.

SUBTITLE B--STUDIES AND REPORTS

SECTION 1431--ANNUAL REPORT ON MILITARY MEDICAL FACILITIES

This section would require the Secretary of Defense to submit an annual report beginning with the budget submission for fiscal year 2009 on the adequacy, suitability, and quality of military medical facilities and medical-related support facilities. This section would require that the report include any facility deficiencies and accompanying response plans identified through the toll-free hot line made available to service members and families residing in medical-related support facilities.

SECTION 1432--ACCESS OF RECOVERING SERVICE MEMBERS TO ADEQUATE OUTPATIENT RESIDENTIAL FACILITIES

This section would require the Inspectors General of the regional medical commands to conduct semi-annual inspections of facilities housing recovering service members for the first two years following the date of enactment of this Act and annually thereafter. This section would require the inspection results to be coordinated with local and service medical and civilian leadership, reported to the Congress, and posted on the Internet website for the regional medical command.

SECTION 1433--EVALUATION AND REPORT ON DEPARTMENT OF DEFENSE AND DEPARTMENT OF VETERANS AFFAIRS DISABILITY EVALUATION SYSTEMS

This section would require the Secretary of Defense and the Secretary of Veterans Affairs to conduct a joint evaluation of the disability evaluation systems operated by both secretaries for the purpose of improving the consistency of the two systems and evaluating the feasibility of, and potential for, consolidating the two systems. This section would require the secretaries to consider the findings and recommendations of the Veterans' Disability Benefits Commission.

SECTION 1434--STUDY AND REPORT ON SUPPORT SERVICES FOR FAMILIES OF RECOVERING SERVICE MEMBERS

This section would require the Secretary of Defense to conduct a study of the support services provided to families of recovering service members to include: a survey of the services currently provided; a determination of the services that may be provided with the associated costs; an estimate of the number of family members that would be eligible to receive the services; and a determination of any employment discrimination that the family members experience.

SECTION 1435--REPORT ON TRAUMATIC BRAIN INJURY CLASSIFICATIONS

This section would require the Secretary of Defense to report on the changes being undertaken to ensure that traumatic brain injury victims receive a proper medical designation concomitant with their injury. The committee is aware that the Department of Defense recognizes that the current classification of organic psychiatric disorder used to classify traumatic brain injuries suffered by service members may require further definition.

SECTION 1436--EVALUATION OF THE POLYTRAUMA LIAISON OFFICER/NON-COMMISSIONED OFFICER PROGRAM

This section would require the Secretary of Defense to conduct an evaluation of the Polytrauma Liaison Officer/Non-commissioned Officer program operated by the military departments and the Department of Veterans Affairs to assist the transition of members from the Department of Defense health care system to the Department of Veterans Affairs system.

SECTION 1437--STUDY AND REPORT ON STANDARD SOLDIER PATIENT TRACKING SYSTEM

This section would require the Secretary of Defense to conduct a study on the feasibility of developing a soldier tracking system for recovering service members to ensure that each member's location and exact status in the medical holdover process can be determined by commanders, medical holdover managers, and the members themselves.

SECTION 1438--STUDY AND REPORT ON WAITING PERIODS FOR APPOINTMENTS AT DEPARTMENT OF VETERANS AFFAIRS MEDICAL FACILITIES

This section would require the Secretary of Veterans Affairs to study the average length of time between the desired date for which a veteran seeks an appointment for health care at a Department of Veterans Affairs medical facility and the date on which such an appointment is completed. This section would require the Secretary to report his findings and recommendations for reducing the waiting time between the desired date for an appointment and the completion of the appointment to a maximum of 15 days.

SUBTITLE C--GENERAL PROVISIONS

SECTION 1451--MORATORIUM ON CONVERSION TO CONTRACTOR PERFORMANCE OF DEPARTMENT OF DEFENSE FUNCTIONS AT MILITARY MEDICAL FACILITIES

This section would prohibit the initiation or announcement of a competition under Office of Management and Budget Circular A-76 relating to the possible conversion to performance of functions at a Department of Defense military medical facility by a contractor. The prohibition would be effective during a 12-month period beginning on the date of enactment of this Act.

SECTION 1452--PROHIBITION ON TRANSFER OF RESOURCES FROM MEDICAL CARE

This section would prohibit the transfer of funds or personnel from medical care functions within the Department of Defense to support the administrative requirements imposed by this Act.

SECTION 1453--INCREASE IN PHYSICIANS AT HOSPITALS OF THE DEPARTMENT OF VETERANS AFFAIRS

This section would require the Secretary of Veterans Affairs to increase the number of resident physicians at hospitals of the Department of Veterans Affairs.

TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM

OVERVIEW

Section 1008 of the National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), required the budget submission to Congress for each fiscal year after fiscal year 2007 to include:

(1) A request for the appropriation of funds for that fiscal year for ongoing operations in Afghanistan and Iraq;

(2) An estimate of all funds expected to be required in that fiscal year for operations; and

(3) A detailed justification of the funds requested.

The committee recognizes that the Department's budget submission for fiscal year 2008 complied with this section and expects similar budget justification materials to be provided with the fiscal year 2009 budget submission to the extent that operations are still anticipated to require American military commitment during that period.

The committee recommends authorization of $141.8 billion in funds to be appropriated available upon enactment of this Act to support the defense activities principally associated with Operation Iraqi Freedom and Operation Enduring Freedom.

SUMMARY TABLE OF AUTHORIZATIONS

The following table summarizes authorizations included in the bill for Operation Iraqi Freedom and Operation Enduring Freedom.

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ITEMS OF SPECIAL INTEREST

PROCUREMENT

F/A-18E/F

The fiscal year 2008 budget request for ongoing military operations contained $725.7 million for procurement of 12 F/A-18E/F aircraft.

The committee notes that the conference report (H. Rept. 110-107) accompanying the U.S. Troop Readiness, Veterans' Health Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007, an increase of $192.0 million for three F/A-18E/Fs, and believes that this increase meets requirements for three F/A-18E/Fs for fiscal year 2008.

The committee recommends $543.7 million, a decrease of $182.0 million, for F/A-18E/F procurement for three F/A-18E/F aircraft.

F-15 modifications

The fiscal year 2008 request for ongoing military operations contained $152.9 million for F-15 modifications, containing $22.0 million for tactical targeting network technology (TTNT).

TTNT would provide the F-15 with wideband network technology for improved data transmission and reception. The committee notes that the Government Accountability Office (GAO) recommended a decrease of $22.0 million for the TTNT since these funds could not be obligated until fiscal year 2010, and that the Department of the Air Force F-15 program office concurred with the GAO recommendation.

The committee recommends $130.0 million, a decrease of $22.0 million, for F-15 modifications.

Hellfire missiles

The fiscal year budget request for ongoing military operations contained $228.4 million to procure 2,585 Hellfire missiles.

The committee recognizes that the Hellfire missile has provided invaluable point target capabilities in current operations and continues to be the Army's primary air-launched anti-armor system. The committee understands that nearly 6,800 Hellfire missiles have been expended during current military operations, and that the Army continues to expend over 720 missiles per fiscal year in combat operations alone. Based upon current usage, the inventory will fall below the Army's projected requirement in fiscal year 2013.

While the current acquisition strategy is subject to change due to developments in the Joint Air-to-Ground Missile (JAGM) program, the committee remains concerned that there will be a minimum of a three year capabilities gap between a shortfall in Hellfire inventory in fiscal year 2013, and the planned initiation of full-rate production of JAGM in fiscal year 2016. The committee is also concerned about the continued practice of the Air Force borrowing missiles from the Army inventory, rather than procuring its own missiles, further depleting the Army's inventory.

Therefore, the committee strongly suggests that the Army reconsider its acquisition policy and procure Hellfire missiles to maintain the minimum inventory as defined by the Army's stated requirements. In addition, the committee strongly recommends that the Air Force budget for its projected Hellfire missile requirements.

Joint network node

The fiscal year budget request for ongoing military operations contained $2.2 billion for Joint Network Node (JNN) equipment. In addition, the base budget request contained $372.3 million for JNN equipment.

The committee notes that the Army is in the process of transitioning the JNN system to a program of record. As part of this process, the Army intends to produce a set of low-rate initial production (LRIP) JNN equipment for use in operational test and evaluation necessary to proceed to full-rate production. Therefore, the committee does not believe the Army could execute the requested $2.2 billion after completing LRIP, the operational test and evaluation, and a Milestone C decision event in fiscal year 2008. In addition, the committee believes that the funding for JNN equipment provided in fiscal year 2007, the funding authorized for JNN funding under title I of this Act, and the funding authorized in this title is sufficient to procure the quantities of JNN equipment necessary to meet deployment requirements and conduct the operational test and evaluation.

The committee recommends $115.3 million, a decrease of $2.1 billion, for Joint Network Node procurement. The $115.3 million authorized is in addition to the $347.4 million authorized in title I of this Act. Of the $2.1 billion decrease, $1.0 billion was transferred to the mine resistant ambush protected vehicle.

Joint strike fighter

The fiscal year 2008 budget request for ongoing military operations contained $230.0 million for one F-35A aircraft.

The committee notes that the Department of the Air Force justifies the $230.0 million request for one F-35A aircraft as a replacement for the combat loss of one F-16 aircraft. However, a Government Accountability Office (GAO) budget fact sheet notes that this aircraft would not be delivered until fiscal year 2010, would be used as a training aircraft, recognizes several F-16s are planned for retirement in the next three years, and recommended that the Department of the Air Force delay the planned retirement of one F-16 to replace this combat loss. The committee also notes that the Department of the Air Force did not provide comments on the GAO recommendation despite its opportunity to do so. The committee concurs with the GAO recommendation.

The committee recommends no funds, a decrease of $230.0 million, for one F-35A aircraft.

MC-130J

The fiscal year 2008 request for ongoing military operations contained $1.4 billion for 17 C-130Js, of which $132.0 million was included for two MC-130J variants.

The MC-130J program would provide a replacement for the aging MC-130E and MC-130P fleets, which perform special operations infiltration, exfiltration, re-supply, and helicopter aerial refueling missions. The committee notes that the projected budget request for fiscal year 2009 contains $65.7 million for advance procurement for four MC-130J aircraft. The committee also notes that the MC-130J procurement program is a new start program for fiscal year 2008, at the time of the budget request neither the capabilities development document nor the acquisition strategy had been finalized, and that the budget request contained $10.1 million in PE 64261F for both HC-130J and MC-130J acquisition planning, systems engineering, and test planning. The committee believes that capabilities development and completion of the acquisition strategy should precede a request for full funding, and that funding has been requested in PE 64261F to complete these activities in fiscal year 2008. However, the committee also believes that advance procurement of two MC-130Js in fiscal year 2009 should be provided, consistent with the budget request.

The committee recommends $1.2 billion for C-130J procurement, a decrease of $132.0 million for two MC-130J aircraft. The committee also recommends an increase of $33.0 million for advance procurement of two MC-130Js for fiscal year 2009.

Mine resistant ambush protected vehicle

The fiscal year 2008 budget request for ongoing military operations contained $441.0 million to procure mine resistant ambush protected (MRAP) vehicles. The committee understands that a $4.1 billion unfunded requirement remains for the MRAP vehicle program.

The MRAP vehicle program is not viewed by the military services as a long-term acquisition program of record but rather is seen as an urgent theater specific requirement that would address an immediate need for additional force protection in Operation Iraqi Freedom and Operation Enduring Freedom from improvised explosive devices (IEDs). The committee understands MRAP vehicles could reduce the casualties in vehicles from IED attacks by as much as 80 percent. The committee is also aware the Commandant of the Marine Corps and the Chief of Staff of the Army have indicated that MRAP vehicles are their top priority and have stated officially to the Chairman of Joint Chiefs of Staff the request to fully resource the MRAP theater requirement.

The committee remains concerned that the fiscal year 2008 budget request for ongoing military operations did not adequately resource the remaining MRAP funding requirement considering the urgent need for the program. The committee believes it had no other alternative but to realign funding from lower priority programs in the fiscal year 2008 budget request for ongoing military operations to address the urgent MRAP requirement since the Department did not anticipate emerging MRAP requirements. The committee feels strongly that the Department of Defense should submit to the congressional defense committees an amended fiscal year 2008 request for ongoing military operations that adequately resources the MRAP vehicle program based on reasonable projected industrial base production capability.

The committee understands the MRAP acquisition strategy is extremely ambitious and would utilize up to nine vendors to maximize industrial base production capability and delivery cycles. The committee supports this unprecedented acquisition strategy because of the urgency and need for the requirement but notes this strategy could present significant difficulties across the full spectrum of acquisition and sustainment. The committee directs the Assistant Secretary of the Navy for Research, Development and Acquisition to submit updates every 30 days to the congressional defense committees on (1) MRAP requirements; (2) contracting strategy; (3) additional test and evaluation; (4) sustainment strategy; and (5) implications for other acquisition programs considering contract priority ratings.

The committee recommends $4.6 billion, an increase of $4.1 billion, to complete the MRAP theater requirement. The funding provided in this act is as follows:

Other procurement, Army

$1.55 B

Other procurement, Navy

$21.0 M

Procurement, Marine Corps

$1.98 B

Other Procurement, Air Force

$430.0 M

Procurement, Defense-Wide

$125.0 M

Radio, improved high frequency, commercial off the shelf family

The fiscal year 2008 budget request for ongoing military operations contained $433.5 million for radio, improved high frequency family systems. In addition, the base budget request contained $81.4 million for radio, improved high-frequency family systems.

The committee notes that during fiscal years 2006 and fiscal years 2007, the Army received funding to procure more than 56,000 improved high-frequency radios of various models, yet unit cost per radio has remained either flat or has increased. In addition, the committee notes that the Army has a limited production capacity that may not allow for execution of the full amount requested in fiscal year 2008.

The committee recommends $325.1 million, a decrease of $108.4 million, for the radio, improved high-frequency family systems. The $325.1 million authorized is in addition to the $61.0 million authorized in title I of this Act.

Single channel ground and airborne radio system family

The fiscal year 2008 budget request for ongoing military operations contained $1.4 billion for procurement of 98,410 Single Channel Ground and Airborne Radio System (SINCGARS) family radios. In addition, the base budget request contained $147.6 million for SINCGARS family radios.

The committee notes that the unit cost for SINCGARS radios increased from approximately $7,000 per radio system in the fiscal year 2007 budget request to approximately $10,000 per radio system in the fiscal year 2008 budget request. This growth in unit cost occurred despite no change in the type of radios procured and a dramatic increase in the overall number of radios planned for procurement. In addition, the committee is concerned that the Army requested funding for 98,410 radios when, according to analysis by the Government Accountability Office, only 44,900 can be produced and delivered by the first quarter of fiscal year 2010.

The committee recommends $615.9 million, a decrease of $754.5 million, for SINCGARS family radios procurement. The $615.9 million is in addition to the $147.6 million authorized in title I of this Act.

Tactical operations centers reduction

The fiscal year 2008 budget request for ongoing military operations contained $263.7 million for Tactical Operations Centers (TOC) equipment. In addition, the base budget request contained $393.9 million for TOC equipment.

The committee notes that the Army TOC program provides a capability similar to several other Department of Defense programs, including the Navy Deployable Joint Command and Control (DJC2) and U.S. Marine Corps Combat Operations Center (COC) programs. The committee also notes that the Army received $219.9 million in fiscal year 2007 for the TOC program.

The committee recommends $131.9 million, a decrease of $131.9 million, for Army Tactical Operations Centers procurement. The $131.9 million authorized is in addition to the $196.9 million authorized in Title I of this act.

RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

A-10 squadrons

The budget request contained $230.0 million for A-10 squadrons to develop an A-10 propulsion upgrade program (PUP) for the A-10's TF-34-100A engine. The PUP would develop an engine kit that would result in a TF-34-100B engine capable of providing increased thrust.

The Government Accountability Office (GAO) identified this as a premature request because the $215.0 million could not be obligated until the third quarter of fiscal year 2009 when comencement of the system development and demonstration (SDD) program is scheduled to begin. The committee notes that the A-10 program office reviewed the GAO recommendation and found no errors of facts or omissions in its content. The committee understands that $15.0 million can be obligated in fiscal year 2008 for pre-SDD activities.

The committee recommends $15.0 million, a decrease of $215.0 million for A-10 squadrons. The committee supports the requirement for an A-10 PUP, and encourages the Department of the Air Force to request funding for the PUP in its Future Years Defense Program.

The committee also notes that while $230.0 million was requested for the PUP SDD, the budget justification materials state that the cost estimate for the PUP SDD program is $275.0 million, or $45.0 million less than the amount requested. Additionally, budget justification materials state that the PUP engine kit production, installation, and logistics cost estimate for the Department of the Air Force's A-10 fleet is $2.0 billion, but that procurement funds are not budgeted for this purpose. The committee strongly cautions the Department of the Air Force against submitting a budget request for a program without the budgeted funds necessary to carry out its acquisition strategy.

E-10 squadrons

The fiscal year 2008 request for ongoing military operations contained $178.4 million for development of E-10 aircraft capabilities, containing $124.8 million for multi-platform radar technology insertion program (MP-RTIP) sensor development and $53.5 million was included for either development of battle management command and control (BMC2) architecture or for the final payment on a Boeing 767-400ER aircraft.

The Boeing 767-400ER was planned to be an E-10 test aircraft. The E-10 aircraft was intended to be key node in the command and control constellation that would have brought operational command and control through the use of advanced sensors, sensor fusion, and high-speed, wide-band communications systems; however, the committee notes that the E-10 program will be terminated in fiscal year 2007.

The MP-RTIP is a modular, scalable two-dimensional active electronically-scanned array radar system, which would have been used on the E-10 aircraft, and is currently being developed in a smaller size for use on the Global Hawk unmanned aerial vehicle (UAV). The committee notes that the Department of the Air Force is uncertain with respect to how the MP-RTIP funds would be used since its justification for these funds is not definitive as to whether funds would be used for acceleration of deferred or removed MP-RTIP radar modes, or to develop new MP-RTIP radar modes. Similarly, the committee notes that the Department of the Air Force is also uncertain as to whether funds would be used to develop BMC2 architecture or for the final payment on a Boeing 767-400ER aircraft.

The committee recommends no funds for E-10 squadrons, a decrease of $178.4 million.

F-16 squadrons

The budget request contained $55.3 million for F-16 squadrons, containing $7.7 million to develop F-16 beyond line of sight (BLOS) secure communications.

The Government Accountability Office (GAO) identified $47.6 million as excess to F-16 BLOS secure communication requirements, and notes that the Department of the Air Force concurred with the GAO recommendation to reduce the F-16 modification budget request by $47.6 million.

The committee recommends $7.7 million for F-16 modifications, a decrease of $47.6 million.

OPERATION AND MAINTENANCE

Logistics Civil Augmentation Program

The budget request contained $6.0 billion for the Logistics Civil Augmentation Program (LOGCAP). The LOGCAP is an Army managed program, which contracts for the delivery of several categories of base camp services at overseas locations including dining halls, power generation, and waste management. The committee notes that the budget request exceeds the amount budgeted for this program in fiscal year 2007 by $880.7 million, or more than 14 percent. However, the Deputy Secretary of Defense has testified that the fiscal year 2008 budget request for ongoing military operations was based upon a straight-line projection of the war costs in fiscal year 2007. The committee is therefore concerned that the increase in the budget request may be due to cost growth in the LOGCAP program.

The committee is deeply concerned about the cost performance of the LOGCAP contract and the ability of the Department of Defense to properly manage and oversee this contract. The Director of the Defense Contract Audit Agency and the Army Auditor General testified before the Senate Committee on Armed Services (SASC) on April 19, 2007, regarding numerous unnecessary or unallowable cost proposals submitted under the LOGCAP program, including labor rates 50 percent more than historical averages, material costs overstated by 47 percent, acquisition of equipment well in excess of requirements, excessive management overhead, and the hiring of private security contractors in violation of explicit contract requirements. In total, the Army testified that it had reduced payments to the contractor in 2005 and 2006 from the contractor's estimate of $10.0 billion to $4.0 billion, a decrease of $6.0 billion in the costs initially proposed by the contractor. Despite all of these problems with contract management, the Army has consistently awarded more than 85 percent of the money allocated for incentive fees to the contractor, whose primary function is to manage and control subcontractors and their costs. Award fees have totaled more than $250.0 million.

The Army presented testimony during the April 19, 2007 SASC hearing that it has made significant progress in controlling costs under LOGCAP since August of 2005. In addition, the committee is aware that the Army will be awarding a new set of contracts for this program, known collectively as LOGCAP IV, during fiscal year 2007, which will ensure the participation of more than one contractor in the program. LOGCAP IV will allow for competition of task orders, therefore lowering costs. For these reasons, the committee expects that all other factors being equal, costs under the LOGCAP program should be lower during fiscal year 2008 than during fiscal year 2007. The committee accordingly recommends $4.1 billion, a decrease of $880.0 million for LOGCAP.

MILITARY PERSONNEL

The committee has recommended increases in the active component end strength for the Army and the Marine Corps to sustain the full range of capabilities being assigned to the ground forces. The committee recommends funding a cumulative active component increase of 36,000 for the Army and 9,000 for the Marine Corps over and above the budget request.

MILITARY CONSTRUCTION

The budget request contained $907.9 million to support construction efforts, containing $212.4 million in power plants and wastewater treatment plants in Iraq.

The committee has consistently advocated for temporary infrastructure improvements in Iraq that maintain the expeditionary nature of operations. Construction of power plants and wastewater treatment plants denotes an enduring presence in theater and is contrary to existing Department of Defense policy and the committee's direction for the sustainment of current operations.

The committee recommends a decrease of $212.4 million for power plants and wastewater treatment plants in Iraq.

LEGISLATIVE PROVISIONS

SECTION 1501--PURPOSE

This section would establish this title and make authorization of appropriations available upon enactment of this Act for the Department of Defense, in addition to amounts otherwise authorized in this Act, to provide for additional costs due to the Operation Iraqi Freedom and Operation Enduring Freedom. This section would also state that Congress has provided deployed forces and their families with ongoing funds for their protection and operations and will continue to support their service and valor.

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

SECTION 1502--ARMY PROCUREMENT

This section would authorize an additional $18.2 billion for Army procurement.

SECTION 1503--NAVY AND MARINE CORPS PROCUREMENT

This section would authorize an additional $5.4 billion for Navy and Marine Corps procurement.

SECTION 1504--AIR FORCE PROCUREMENT

This section would authorize an additional $9.2 billion for Air Force procurement.

SECTION 1505--JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

This section would authorize an additional $4.0 billion for the Joint Improvised Explosive Device Defeat Fund.

SECTION 1506--DEFENSE-WIDE ACTIVITIES PROCUREMENT

This section would authorize an additional $0.6 billion for Defense-Wide Activities procurement.

SECTION 1507--RESEARCH, DEVELOPMENT, TEST AND EVALUATION

This section would authorize an additional $2.2 billion for research, development, test and evaluation.

SECTION 1508--OPERATIONS AND MAINTENANCE

This section would authorize an additional $72.2 billion for operations and maintenance programs.

SECTION 1509--DEFENSE WORKING CAPITAL FUNDS

This section would authorize an additional $1.7 billion for Defense Working Capital Funds.

SECTION 1510--OTHER DEPARTMENT OF DEFENSE PROGRAMS

This section would authorize an additional $2.3 billion to other Department of Defense programs.

SECTION 1511--IRAQ FREEDOM FUND

This section would authorize an additional $0.1 billion to the Iraq Freedom Fund.

SECTION 1512--IRAQ SECURITY FORCES FUND

This section would authorize an additional $2.0 billion to the Iraq Security Forces Fund.

SECTION 1513--AFGHANISTAN SECURITY FORCES FUND

This section would authorize an additional $2.7 billion to the Afghanistan Security Forces Fund.

SECTION 1514--MILITARY PERSONNEL

This section would authorize an additional $17.5 billion for military personnel.

SECTION 1515--AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS

This section would authorize an additional $0.5 billion for Authorized Army Construction and Land Acquisition Projects.

This section would authorize an additional $0.2 billion for Authorized Navy Construction and Land Acquisition Projects.

SECTION 1517--TREATMENT AS ADDITIONAL AUTHORIZATIONS

This section would state that amounts authorized to be appropriated by this Title are in addition to amounts otherwise authorized to be appropriated by this Act.

TITLE XVI--NATIONAL GUARD ENHANCEMENT

ITEMS OF SPECIAL INTEREST

JOINT QUALIFICATION CREDIT FOR SERVICE AS THE ADJUTANT GENERAL OF A STATE

The committee is aware that the Secretary of Defense, in coordination with the Chairman of the Joint Chiefs of Staff, is in the process of developing and implementing a new joint qualification system based on reforms to the joint officer management system and joint professional military education system required by section 516 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364). The committee also understands that the new joint qualification system would apply to reserve component officers on the reserve active status list and to federally recognized officers and that such officers who perform duties that meet the criteria established for joint matters would be able to earn joint experience points and be designated a joint qualified officer. The committee believes that in implementing the new joint qualification system the Secretary should evaluate the positions of adjutant generals in each of the States. Therefore, the committee directs the Secretary to review:

(1) The adjutant general positions in the States to determine whether the duties of those positions meet the criteria for joint matters and whether, if filled by a federally recognized reserve component officer, would give that officer joint experience points; and

(2) The past service of currently serving federally recognized State adjutants general to determine whether their past or current service qualifies for joint experience credit and whether such service qualifies any for designation as a joint qualified officer.

The committee directs the Secretary of Defense to provide the findings of this review to the Senate Committee on Armed Services and the House Committee on Armed Services within one year of enactment of this Act.

REPORT ON REFORMS NEEDED TO PRODUCE SUFFICIENT NUMBERS OF QUALIFIED RESERVE COMPONENT PERSONNEL TO SERVE IN SENIOR GENERAL AND FLAG OFFICER POSITIONS

Beginning with Operation Desert Storm in the early 1990s, the armed forces increasingly have relied on the reserve components for a wide variety of operational missions, including wartime roles, homeland defense missions, and military assistance to civil authorities. Accompanying this increased reliance are the expanded requirements for reserve component officers to serve on active duty or full-time national guard duty in general and flag officer positions, not only within their respective military services, but also within joint commands. The committee supported this expansion of opportunities for reserve component flag and general officers in previous recommendations to establish general and flag officer positions in joint combatant commands and on the joint staff which could only be filled by reserve component officers. Further, the committee supported the requirement that officers serving as chiefs of the reserve components and Chief of the National Guard Bureau hold the grade of lieutenant general or vice admiral. Elsewhere in this title, the committee recommends that the Chief of the National Guard Bureau serve in the grade of general, expands the number of joint positions at the grade of lieutenant general or vice admiral that must be held by a reserve component officer, and revises statutes in anticipation that a reserve component officer will one day serve as a combatant commander.

The committee is concerned, however, that the career development, promotion and assignment systems in operation for reserve component officers within each of the military services, as well as the joint professional development, education, and assignment systems, are inadequate to provide sufficient numbers of fully qualified reserve component officers for consideration for advancement to and through the general and flag officer grades. Resolving that inadequacy is a complex task that cannot be met individually by the military services, nor can the shortfalls be resolved by Congress. Therefore, the committee directs the Secretary of Defense, in coordination with the Chairman of the Joint Chiefs of Staff and the secretaries of the military services, to review the career development, promotion, and assignment systems for reserve component officers and make the recommendations for change to statute and policy that the Secretary deems appropriate to accomplish the following:

(1) Provide a comprehensive, coordinated system for advancement of reserve component officers from colonel, or captain in the Navy, through the general officer grades to the grade of lieutenant general or vice admiral; and,

(2) Provide a sufficient pool of qualified reserve component officers to be considered for appointment to positions that require or merit the grades of lieutenant general or vice admiral and general or admiral.

Furthermore, the committee directs the Secretary of Defense to provide an interim report to the Senate Committee on Armed Services and House Committee on Armed Services within one year after the date of enactment of this Act, and a final report to those committees within two years after the date of enactment of this Act.

LEGISLATIVE PROVISIONS

SECTION 1601--SHORT TITLE

The section would provide that this title may be cited as the `National Guard Empowerment Act.'

SUBTITLE A--NATIONAL GUARD BUREAU

SECTION 1611--ENHANCEMENT OF DUTIES AND POSITION OF CHIEF OF THE NATIONAL GUARD BUREAU

This section would require that an officer appointed as the Chief of the National Guard Bureau (CNGB) serve in the grade of four-star general and be the principal advisor to the Secretary of Defense, through the Chairman of the Joint Chiefs of Staff, on National Guard matters. This section would require the Secretary to nominate an officer or officers to the President for consideration for appointment to the position of CNGB within 120 days after enactment of this act. Furthermore, this section would designate the CNGB as an advisor on such matters to the commander of Northern Command and to the Secretary of Homeland Security. This section would also describe the appointment process by which officers would be recommended to the President for appointment as CNGB.

In recommending an expanded advisory role for the CNGB, the committee has not changed the underlying statutory requirement that the CNGB remain an advisor to the secretaries of the Army and Air Force, as well as to the chiefs of staff of those military services. Furthermore, the committee does not intend that either the increased grade or the expanded advisory responsibility of the CNGB should alter the status of the Army and Air National Guard as reserve components of the Army and Air Force. However, the committee does believe that the revised duties of the CNGB, as they relate to military assistance to civil authorities, include identifying gaps between federal and state emergency response capabilities and making recommendations on programs and activities of the National Guard to address such gaps.

SECTION 1612--ESTABLISHMENT OF THE NATIONAL GUARD BUREAU AS JOINT ACTIVITY OF DEPARTMENT OF DEFENSE

This section would make the National Guard Bureau (NGB) a joint activity of the Department of Defense. The committee does not believe that the designation of the NGB as a joint activity should change the relationship of the NGB with the Army and the Air Force related to matters pertaining to title 10, United States Code, and planning and budgeting for requirements under title 32, United States Code.

SECTION 1613--ENHANCEMENT OF FUNCTIONS OF NATIONAL GUARD BUREAU

This section would expand the statutory requirements of the National Guard Bureau (NGB) charter to include facilitation and coordination with federal agencies, the adjutants general of the States, Northern Command, and Joint Forces Command on the use of national guard personnel and resources in the conduct of operations under the authority of title 32, United States Code, or in support of state missions.

This section would also charge the Secretary of Defense, in consultation with the Secretary of the Army and Secretary of the Air Force, to further develop the charter for the NGB, ensuring that the charter reflects the full scope of the functions and activities of the NGB. As the Secretary of Defense develops the charter for the NGB, the committee believes it is appropriate for the Secretary to consider the full range of activities that the NGB is currently performing, as well as those functions that it is reasonable to assume the NBG may perform in the future, especially as those duties and functions relate to military assistance to civil authorities. Some of those functions may include, but not be limited to:

(1) Assisting the Secretary of Defense and the Secretary of Homeland Security, as well as the Commander, Northern Command, in the validation of the requirements of the several States and Territories with respect to military assistance to civil authorities;

(2) Facilitating and supporting the training requirements relating to the provision of military assistance to civil authorities;

(3) Making recommendations to the Secretary of Defense, and to the Secretaries of the Army and Air Force, for the acquisition of equipment, material, and other supplies and services for the provision of military assistance to civil authorities;

(4) Assisting the Secretary of Defense in preparing the budget materials described in section 1614 of this Act; and

(5) Administering amounts provided to the National Guard for the provision of military assistance to civil authorities.

The committee expects that the Secretary of Defense will periodically review the charter of the NGB to ensure that it accurately reflects the full scope of the functions and activities of the NGB, and make modifications to the charter as required. Despite these enhancements to NGB functions, the committee does not intend for the NGB to assume the characteristics of an operational command.

SECTION 1614--REQUIREMENT FOR SECRETARY OF DEFENSE TO PREPARE ANNUAL PLAN FOR RESPONSE TO NATURAL DISASTERS AND TERRORIST EVENTS

This section would require the Secretary of Defense, in consultation with the commander of U.S. Northern Command and the Chief of the National Guard Bureau, to submit to Congress before March 1, 2008, and annually thereafter, a plan for coordinating the use of the National Guard and members of the armed forces on active duty when responding to natural disasters, acts of terrorism, and other man-made disasters. The plan would include national planning scenarios for a variety of hazards. Additionally, this section would require the plan to provide two response contingencies for each national planning scenario: one using only members of the National Guard and another using both members of the National Guard and members of the regular components of the armed forces. This section would further require the plan to cover, at a minimum, the following:

(1) Protocols for the Department of Defense, the National Guard Bureau, and the Governors of the several States to carry out operations in coordination with each other and to ensure that Governors and local communities are properly informed and remain in control in their respective states and communities;

(2) An identification of operational procedures, command structures, and lines of communication to ensure a coordinated, efficient response to contingencies; and

(3) An identification of the training and equipment needed for both National Guard personnel and members of the armed forces on active duty to provide military assistance to civil authorities and for other domestic operations to respond to hazards identified in the national planning scenarios.

Finally, this section would require the National Guard Bureau to provide the Secretary of Defense information gathered from Governors, adjutant general of States, and other State civil authorities responsible for homeland preparation and response to natural and man-made disasters.

SECTION 1615--DETERMINATION OF DEPARTMENT OF DEFENSE CIVIL SUPPORT REQUIREMENTS

This section would require the Secretary of Defense to identify the military-unique capabilities required by the military services, including the reserve components, the joint commands, and defense agencies, to support civil authorities in an incident of national significance or catastrophic incident, as those terms are defined by the National Response Plan. The section would also require the Secretary to develop and implement a plan to provide resources necessary for the military services, their reserve components, the joint commands, and defense agencies to meet those requirements, as well as for any other additional capabilities, and to explain the resourcing plan in the materials submitted with the annual budget request. Lastly, this section would modify the requirement of the Secretary to provide biannual written policy guidance to the Chairman of the Joint Chiefs by including a requirement for guidance on providing support to civil authorities.

The committee expects that Chief of the National Guard Bureau will advise the commander of Northern Command, the Secretaries of the Air Force and Army, and through the Chairman of the Joint Chiefs of Staff, the Secretary of Defense, regarding how the National Guard may help address gaps between federal and state emergency response capabilities, particularly as the Secretary identifies the resources required by this section and develops the plan to meet those requirements.

The committee believes that it is the responsibility of the Secretary of Homeland Security to develop a holistic, government-wide system, in accordance with the National Response Plan, to respond to an incident of national significance or a catastrophic incident. In the development of the military-unique capabilities required by this section, the committee expects that the Secretary of Homeland Security and the Secretary of Defense will work closely together and that the military-unique requirements will generally reflect the Department of Defense's supporting role in most matters related to assistance to civil authorities. The committee believes it would be appropriate for the Secretary of Homeland Security and the Secretary of Defense to agree on the military-unique capabilities required from the Department of Defense as an element of the factors the Secretary of Defense uses to determine which requirements are validated and incorporated into the resourcing plan required by this section.

SECTION 1616--CONFORMING AND CLERICAL AMENDMENTS

This section would make various non-substantive conforming and clerical corrections.

SUBTITLE B--ADDITIONAL RESERVE COMPONENT ENHANCEMENTS

SECTION 1621--UNITED STATES NORTHERN COMMAND

This section would require the Chairman of the Joint Chiefs of Staff to complete a manpower review of the military and civilian positions, job descriptions, and assignments within U.S. Northern Command (NORTHCOM), to include the position of the Commander and Deputy Commander of NORTHCOM itself, and its subordinate commands, with the goal of significantly increasing the numbers of reserve component personnel assigned or employed by NORTHCOM who have experience in planning, training, and employing forces for domestic emergency response and military assistance to civil authorities. This section would require the review to be completed within one year after enactment of this Act. The review and any recommendations deemed appropriate by the Secretary of Defense would be provided to the Congress 90 days after the Secretary receives the review.

The section would also require the Secretary of Defense to establish protocols and procedures to enable an officer in a title 10, United States Code, status or an officer in a title 32, United States Code, status to command mixed-status forces, comprised of units and personnel in both title 10 and title 32 status, in connection with the training and employment of those mixed-status forces during homeland defense missions, domestic emergency responses, and military support to civil authorities. This section would require that the protocols and procedures would include enabling the Commander of NORTHCOM and subordinate commanders within the NORTHCOM chain of command, as well as the adjutant general of a State, or officers subordinate to that adjutant general, to exercise command of such mixed status units. In making this recommendation, the committee notes that authority already exists within title 32, United States Code, to enable command of mixed-status forces and that the Army and the Air Force to varying degrees over the last decade have used that authority to create and employ such mixed status forces. Furthermore, the committee's recommendation in section 1624 of this title to expand a National Guard officer's ability to command such mixed status units is intended to facilitate the establishment of such command procedures and protocols. Moreover, the committee believes that the establishment of such protocols and procedures is a necessary precondition for the eventual appointment of a reserve component officer to command NORTHCOM.

SECTION 1622--COUNCIL OF GOVERNORS

This section would require the President to create a bipartisan council of governors to advise the Secretary of Defense, the Secretary of Homeland Security, and the White House Homeland Security Council on matters relating to the National Guard and civil support missions.

SECTION 1623--RESERVE COMPONENTS POLICY BOARD

This section would create a Reserve Components Policy Board in place of the existing Reserve Forces Policy Board. The board would consist of 15 members in the Office of the Secretary of Defense, appointed from civilian life, to provide the Secretary of Defense independent advice and recommendations on strategies, policies, and practices designed to improve and enhance the capabilities, efficiency, and effectiveness of the reserve components of the United States.

SECTION 1624--REQUIREMENTS FOR CERTAIN HIGH-LEVEL POSITIONS TO BE HELD BY RESERVE COMPONENT GENERAL OR FLAG OFFICERS

This section would increase from 10 to 15 the number of general and flag officer joint duty positions below the grade of lieutenant general or vice admiral that the Chairman of the Joint Chiefs of Staff may designate to be filled only by reserve component officers. This section would also require the Chairman of the Joint Chiefs to designate up to three general and flag officer joint duty positions in the grade of lieutenant general or vice admiral to be held only by a reserve component officer. This section would also specify that one of those three positions must be the deputy commander of Northern Command (NORTHCOM), unless the Commander, NORTHCOM is a reserve component officer. The committee makes this recommendation to ensure that there are expanded opportunities for reserve component officers to serve at increasing levels of responsibility in joint duty positions and commands. Furthermore, the committee expects that either the Commander or the Deputy Commander of NORTHCOM shall be an officer with significant experience in planning, training, and employing forces for domestic emergency response and military assistance to civil authorities.

SECTION 1625--RETIREMENT AGE AND YEARS OF SERVICE LIMITATIONS ON CERTAIN RESERVE GENERAL AND FLAG OFFICERS

This section would make adjustments to the retirement ages and years of service limitations on certain reserve general and flag officers.

This section would add two additional reporting requirements to the annual report that the Secretary of Defense is required to submit to Congress regarding the equipment of the National Guard and reserve components. The first item would require a statement of accuracy of the previous inventory projection and if that projection was not met, the reasons why. The second item would require the Chief of the National Guard Bureau to certify an inventory from the preceding year for equipment items for which funds were appropriated and scheduled for procurement, but was not received by the end of that fiscal year. The committee believes these two reporting items will add greater clarity to the equipment status of the National Guard.

TITLE XVII--DEFENSE READINESS PRODUCTION BOARD

OVERVIEW

The committee is deeply troubled by the current state of readiness of the armed forces. Readiness of Army and Marine Corps non-deployed forces falls far short of basic military standards. More recently, even the readiness levels of forces being deployed to combat theaters have been lacking. The Department of Defense has deployed units that did not receive significant items of military equipment until several weeks after arriving in the combat theater. While readiness problems are most severe in the ground forces, the Navy and Air Force are not immune to readiness concerns. Furthermore, the National Guard's readiness problems are critical and impact not only national security, but homeland security as well.

In the past several years, requirements reviews to address readiness shortfalls have occurred primarily in the context of preparing war-related supplemental funding requests. This approach has limited the services to considering only those requirements that can be accomplished readily in a fiscal year, and to considering only shortfalls generated primarily by contingency operations. By so limiting the analysis, the services cannot fully consider their readiness requirements or how the country's total industrial base, both defense and non-defense, could be mobilized to address critical readiness requirements as rapidly as possible. These reviews have not allowed the services to properly correct readiness problems that existed prior to the start of current operations, nor to properly consider solutions that would significantly increase industrial base capacity to address equipment shortfalls. Although the Army, in particular, has done significant work to identify funding in its Future Years Defense Program to correct equipment shortages, this funding had to fit within the Army's limited total obligational authority. It has, by necessity, been spread over multiple years--in some cases more than five years--and will take even longer to fully execute.

As a result, under current plans critical readiness shortfalls will persist for nearly a decade. Therefore, the committee recommends the establishment of a Defense Readiness Production Board to act as a dedicated advisory body to the Secretary of Defense, focused on identifying and correcting the most serious readiness shortfalls. The board would serve to elevate the identification and approval of critical readiness requirements to a level above the military services, where such reviews have been constrained by budget limitations and the processes used to formulate them. This title also would provide additional funding and create significant new authorities to expedite the Department's ability to address the critical readiness requirements established by the board.

The committee believes the significant shortfalls in equipment needed for military operations and training should be addressed through mobilization of the nation's industrial base. The Defense Readiness Production Board would report to the Secretary identifiable opportunities in the industrial base to increase capacity for equipment repair and rebuild, thereby satisfying critical readiness requirements more quickly. The capabilities of industry would be harnessed further through a broad-based Defense Production Industry Advisory Council that would advise the board on industrial-base issues, both inside and outside the Department. Furthermore, through the board's access to all the Department's readiness reporting structures, the Congress would have the benefit of the board's informed opinion on the military services' readiness posture and any efforts needed to rapidly fill critical readiness requirements across all of the military services.

LEGISLATIVE PROVISIONS

SECTION 1701--PURPOSE

This title would establish a Defense Readiness Production Board to identify and designate critical readiness requirements, to improve utilization of the defense industrial base to meet those requirements, and to provide authorities to the Secretary of Defense and the secretaries of the military departments to address critical readiness requirements.

SECTION 1702--ESTABLISHMENT OF DEFENSE READINESS PRODUCTION BOARD

This section would establish the Defense Readiness Production Board within the Office of the Secretary of Defense. Board members would be appointed by the Secretary, and the members would serve for terms established by the Secretary. The board would include representatives from the Office of the Secretary of Defense, the Joint Staff, both the civilian and military leadership of the military services, and other government agencies, as appropriate. The board's membership would include representatives of both the active and reserve components and would include members with responsibilities for depot activities.

This section would require the board to monitor and assess the readiness of the armed forces and designate critical readiness requirements. This section would also require the board to identify and monitor the capacity of the defense industrial base, both inside and outside the Department, to monitor the capacity of non-traditional suppliers, and to advise the Secretary of opportunities to satisfy critical readiness requirements more rapidly. During the period that the board is being established, the Secretary of Defense would be authorized to designate critical readiness requirements.

SECTION 1703--DEFENSE PRODUCTION INDUSTRY ADVISORY BOARD

This section would establish a 12-member Defense Production Industry Advisory Council to advise the board on issues relating to the industrial base. The council would be appointed by the Secretary of Defense in consultation with the Senate Committee on Armed Services and the House Committee on Armed Services. The council would include members broadly representative of the industrial base, including suppliers of materials and non-traditional suppliers.

SECTIONS 1704--ROLE OF CHAIRMAN OF BOARD IN CERTAIN REPORTING PROCESSES

This section would require the chairman of the board's participation in all of the Department's readiness reviews that are required by statute to ensure that the board is fully aware of the readiness status of the armed forces. This section would also require that readiness reports provided to Congress include the comments of the board on the information contained therein.

SECTION 1705--AUTHORITY TO USE MULTIYEAR CONTRACTS

This section would authorize the secretary of a military department to enter into a multiyear procurement contract 30 days after providing notice of such contract to Congress, provided that the contract would address a critical readiness requirement. This authority would be in addition to multiyear procurement authority that exists in current law, but would be less constrained in that:

(1) The secretary would not be required to certify that the multiyear procurement contract would achieve substantial savings compared to annual contracts, but would have to certify that the pricing of the contract was fair and reasonable and that enough information was available to make this determination;

(2) The secretary would not be required to receive specific prior authorization in law in an act other than an appropriations act to enter into a multiyear procurement contract whose value is greater than $500.0 million; and

(3) The secretary would not be required to receive prior authority in an appropriations act to enter into a multiyear procurement contract whose value is greater than $500.0 million.

This section would limit the use of this authority to systems that fulfill a critical readiness requirement. This section would also limit the authority to systems which have been in full-rate production for at least three years, or have previously been approved for a multiyear contract, or are non-developmental commercial items.

The committee notes that this section and the succeeding sections of this title provide authorities directly to the senior leadership of the Department of Defense, rather than to the board, in order to maintain consistency in the assignment of responsibility for execution of major acquisition programs and for making significant funding decisions to the military services and the Office of the Secretary of Defense. The committee does not intend for the board to be an acquisition organization. Rather, the committee expects the board to be a high-level, requirements-setting body focused on the readiness problem, an information clearinghouse for essential readiness data, and a body capable of advising the Secretary of Defense on the capacity of the industrial base to address readiness shortfalls.

SECTION 1706--TRANSFER AUTHORITY

This section would provide transfer authority of $1.0 billion to the Secretary of Defense to address critical readiness requirements. This transfer authority would be in addition to other transfer authorities available to the Secretary.

SECTION 1707--SPECIAL AUTHORITY FOR USE OF WORKING CAPITAL FUNDS FOR CRITICAL READINESS REQUIREMENTS

This section would allow the Secretary of Defense to transfer funds temporarily between Department of Defense working capital funds to address a critical readiness requirement. This transfer authority would be in addition to other transfer authorities available to the Secretary.

SECTION 1708--STRATEGIC READINESS FUND

This section would authorize a Strategic Readiness Reserve Fund of $1.0 billion to fund critical readiness requirements identified by the board.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

PURPOSE

Division B provides military construction, family housing, and related authorities in support of the military departments during fiscal year 2008. As recommended by the committee, Division B would authorize appropriations in the amount of $21,164,322,000 for construction in support of the active forces, reserve components, defense agencies, and the North Atlantic Treaty Organization security infrastructure fund for fiscal year 2008.

MILITARY CONSTRUCTION AND FAMILY HOUSING OVERVIEW

The Department of Defense (DOD) requested $9,636,295,000 for military construction, $8,395,004,000 for base realignment and closure (BRAC) activities, and $2,931,983,000 for family housing for fiscal year 2008. The committee recommends authorization of $9,631,435,000 for military construction, $8,405,004,000 for BRAC activities, and $2,926,483,000 for family housing in fiscal year 2008. The committee's recommendations are consistent with a total budget authority level of $21,164,322,000 for military construction, BRAC, and family housing in fiscal year 2008.

The committee was dissatisfied with the Department's decision to defer authorized projects provided in the John Warner National Defense Authorization Act of 2007 (Public Law 109-364). This decision was unprecedented and is perceived as obviating the committee's oversight process. Numerous critical mission projects were dismissed and military readiness was impacted negatively. This decision by the Department only reinforces the committee's view that military construction projects should be individually authorized.

The committee remains committed to ensuring our troops have the infrastructure available in the required time to best support the assigned mission. To assist in providing responsive military construction to the combatant commanders, section 2808 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136) provided expansive use of operation and maintenance funding to support urgent military construction requirements of a temporary nature. Unfortunately, the committee also notes that the Department has taken liberties in waiving the thresholds established in section 2808. The committee remains concerned that continued abrogation of this limited authority may serve to undermine future use of this expedited military construction authority. The committee expects use of such authority to be limited and that the vast majority of military construction projects and activities to be considered in regular order.

The fiscal year 2008 request for military construction, family housing, and BRAC activities represents the highest level of facility investment in over twenty years. At this level of investment, the Department will find it challenging to manage and execute the proposed projects. Considering the large value of construction awards in certain localized areas, the Department will need to be cognizant of construction industry pressures that may adversely affect government contract pricing.

The committee believes that the fiscal year 2008 budget request for military construction and family housing is inadequate to support military readiness and quality of life requirements. For this reason, the committee has once again reallocated funds within the requested funding levels to provide for additional military construction projects that are necessary for military training, operations, or to improve living or working conditions for military personnel.

A tabular summary of the authorizations provided in Division B for fiscal year 2008 follows:

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SECTION 2001--SHORT TITLE

This section would cite Division B of this Act as the `Military Construction Authorization Act for Fiscal Year 2008.'

TITLE XXI--ARMY

SUMMARY

The budget request contained $4,039,197,000 for Army military construction and $1,162,320,000 for family housing for fiscal year 2008. The committee recommends authorization of $3,977,497,000 for military construction and $1,156,320,000 for family housing for fiscal year 2008.

ITEMS OF SPECIAL INTEREST

ADVANCED INDIVIDUAL TRAINING BARRACKS

The committee believes that there is a direct correlation between the service members' quality of life and the condition of facilities service members use on a frequent basis. This correlation is especially true in the support provided by unaccompanied enlisted personnel housing. The committee is concerned that insufficient resources are provided in the budget submission for the maintenance and recapitalization of Army unaccompanied enlisted personnel housing. The committee urges the Secretary of the Army to accelerate projects, such as the programming and construction of an Advanced Individual Training Barracks at Fort Meade, Maryland, in the next Future Years Defense Plan.

EXPLANATION OF FUNDING ADJUSTMENTS

The committee recommends reduction or elimination of funding for several projects contained in the budget request for military construction and family housing. These reductions include:

(1) $46,000,000 from the funding amount requested for Phase II of an Operations Complex at Eglin Air Force Base. The budget request contained $66,000,000 for Phase II, the construction of a modified standard design complex for two Special Forces Battalions. The committee understands that an environmental impact statement is currently under review and is expected to be completed in September 2008. This will cause a delay on the award of this project. The committee supports authorizing for appropriations an amount equivalent to the ability of a military department to execute in the year of authorization for appropriations. For this project, the committee believes that the Department of Defense has exceeded their ability to fully expend the funding in fiscal year 2008. Accordingly, the committee recommends $20,000,000 to expedite support for this critical mission.

(2) $65,000,000 from the funding amount requested for construction of a joint/coalition/interagency headquarters U.S. Southern Command. The budget request contained $237,000,000; however, the committee believes that the Department has exceeded their ability to fully expend the funding in fiscal year 2008. Accordingly, the committee recommends $172,000,000 to support this project.

(3) $11,000,000 from the funding amount requested for Family Housing Operations. The budget request contained $743,000,000 for Family Housing Operations to support general family housing management of existing assets. The committee notes that the Army continues to aggressively pursue privatization initiatives and intends to continue this effort until almost 99 percent of the on-post, family housing inventory has been privatized. This trend continues in fiscal year 2008. Continued reliance on Residential Communities Initiative should result in a decrease in fiscal support associated with Family Housing Operations, yet the budget request includes unsubstantiated growth of $67,000,000. Furthermore, additional funding was also requested to support grow the force initiatives that appears unjustified. Accordingly, the committee recommends $732,000,000 to support Family Housing Operations.

PLANNING AND DESIGN

The committee recommends that, within the authorized amounts for planning and design, the Secretary of the Army complete planning and design activities for the following projects:

WOUNDED WARRIOR ACCESSIBILITY REQUIREMENTS

The committee is dedicated to ensuring accessible medical installations are available to service members that need additional medical care and services. Unfortunately, there are a multitude of medical facilities that do not meet the minimum accessibility requirements required in the Americans with Disabilities Act of 1990 (Public Law 101-336). The committee is also committed to the anti-terrorism/force protection building standards that require a strict offset requirement. In some instances, these anti-terrorism/force protection standards have reduced general and handicapped parking for medical facilities. It is critical for the Department of Defense to provide the best available care to our wounded warriors, and accessible medical facilities are a critical component of this capability. The committee urges the Department to accelerate projects, such as programming to support accessible parking, for the Fort Bliss William Beaumont Army Medical Center, Texas, in the next Future Years Defense Plan.

LEGISLATIVE PROVISIONS

SECTION 2101--AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS

This section would contain the list of authorized Army construction projects for fiscal year 2008. The authorized amounts are listed on an installation-by-installation basis. The State list contained in this report is intended to be the binding list of the specific projects authorized at each location.

SECTION 2102--FAMILY HOUSING

This section would authorize new construction and planning and design of family housing units for the Army for fiscal year 2008.

SECTION 2103--IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS

This section would authorize improvements to existing units of family housing for fiscal year 2008.

SECTION 2104--AUTHORIZATION OF APPROPRIATIONS, ARMY

This section would authorize specific appropriations for each line item contained in the budget request for fiscal year 2008 for the Army. This section would also provide an overall limit on the amount the Army may spend on military construction projects.

SECTION 2105--MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 2006 PROJECT

This section would increase the authorization for a fiscal year 2006 military construction project at Fort Bragg, North Carolina and appropriate conforming military construction amendments.

TITLE XXII--NAVY

SUMMARY

The budget request contained $2,104,276,000 for Navy military construction and $669,733,000 for family housing for fiscal year 2008. The committee recommends authorization of $2,087,516,000 for military construction and $669,733,000 for family housing for fiscal year 2008.

ITEMS OF SPECIAL INTEREST

EXPLANATION OF FUNDING ADJUSTMENTS

The committee recommends reduction or elimination of funding for several projects contained in the budget request for military construction and family housing. These reductions include:

(1) $10,100,000 (Inc 5-7) to acquire land interests and construct an outlying landing field. The committee notes that the acquisition of an outlying landing field at the Navy's preferred outlying landing field location in Washington County, North Carolina, has been opposed by Washington County, and Beaufort County, North Carolina delegations and will present a number of local concerns, including the loss of a significant tax base, the reduction of high value agricultural products, and a substantial impact to the Pocosin National Wildlife Refuge. The committee encourages the Department of Defense to peruse alternative outlying landing field locations that best support the deployment of the Super Hornet F/A-18 E/F aircraft. Accordingly, the committee recommends no funding to construct the outlying landing field.

(2) $50,000,000 for the construction of a 400-foot extension to the existing Kilo wharf. The budget request contained $101,900,000 million; however, the committee notes that an environmental impact statement is currently under review and is expected to be complete in December 2007. This will cause a delay on the award of this project. The committee supports authorizing for appropriations an amount equivalent to the ability of a military department to execute in the year of authorization for appropriations. For this project, the committee believes that the Department has exceeded their ability to fully expend the funding in fiscal year 2008. Accordingly, the committee recommends $51,900,000 to expedite support for this critical mission.

NAVAL MASTER JET BASING

The committee remains concerned about aviation assets stationed on the east coast of the United States and the worsening encroachment of some naval aviation installations. This encroachment was addressed by the Base Realignment and Closure (BRAC) 2005 Commission direction to the Commonwealth of Virginia and local governments adjacent to Naval Air Station (NAS) Oceana, Virginia, to implement certain encroachment buffer provisions. If the required actions were not taken, the BRAC 2005 Commission directed that the master jet base mission be realigned from NAS Oceana to Cecil Field, Florida, provided the communities surrounding Cecil Field took several specific supporting actions. Unfortunately, neither the Virginia nor the Florida State and local governments took the required actions, leaving the same unsatisfactory situation in place.

The situation is compounded by continuing complaints about aviation jet noise by a vocal minority of citizens in the Hampton Roads, Virginia area, as well as the Navy's difficulty in securing unencroached land suitable for an outlying land field that would ameliorate the effects of encroachment near Naval Alternate Landing Field Fentress.

The committee further notes the BRAC 2005 Commission required that the Secretary of Defense review the offer of the State of Florida to reoccupy Cecil Field and compare this review against any plan to build a new master jet base at any other location. Even though the committee understands the Secretary did not undertake this review since the State of Florida withdrew Cecil Field from consideration, the committee believes that other alternatives should be explored in light of the enduring encroachment at NAS Oceana and consequent impacts on fleet readiness.

The committee encourages the Secretary of the Navy to assess the viability and cost of relocating the east coast master jet base to another location if the Secretary determines such a study is in the best interest of the Navy; and if such a study is made, to submit a report of its assessment and recommendations to the congressional defense committees by February 1, 2008. At a minimum, these basing alternatives shall include, at a minimum, Marine Corps Air Station Cherry Point, North Carolina; Marine Corps Air Station Beaufort, South Carolina; Naval Air Station Key West, Florida; Naval Air Station Pensacola, Florida; Naval Air Station Meridian, Mississippi; and Naval Air Station Kingsville, Texas. The analysis shall use the comparative scoring baseline established in the `Master Jet Base Assessment' of December 9, 2005. If the Secretary recommends retaining the master jet base mission at NAS Oceana, the Secretary shall also provide an assessment on the fleet readiness impacts of that decision, and further measures that he will undertake to reduce existing encroachment.

PLANNING AND DESIGN, NAVY

The committee recommends that, within the authorized amounts for planning and design, the Secretary of the Navy complete planning and design activities for the following projects:

LEGISLATIVE PROVISIONS

This section would contain the list of authorized Navy construction projects for fiscal year 2008. The authorized amounts are listed on an installation-by-installation basis. The State list contained in this report is intended to be the binding list of the specific projects authorized at each location.

SECTION 2202--FAMILY HOUSING

This section would authorize new construction and planning and design of family housing units for the Navy for fiscal year 2008.

SECTION 2203--IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS

This section would authorize improvements to existing units of family housing for fiscal year 2008.

SECTION 2204--AUTHORIZATION OF APPROPRIATIONS, NAVY

This section would authorize specific appropriations for each line item contained in the budget request for fiscal year 2008 for the Navy. This section would also provide an overall limit on the amount the Navy may spend on military construction projects.

SECTION 2205--REPEAL OF AUTHORIZATION FOR CONSTRUCTION OF NAVY OUTLYING LANDING FIELD, WASHINGTON COUNTY, NORTH CAROLINA

This section would amend section 2201(a) of the Military Construction Authorization Act for Fiscal Year 2004 (Public Law 108-136), as amended, and section 2201(a) of the Military Construction Authorization Act for Fiscal Year 2005 (Public Law 108-375), as amended, to repeal the authority for construction of an outlying landing field.

TITLE XXIII--AIR FORCE

SUMMARY

The budget request contained $912,109,000 for Air Force military construction and $1,051,082,000 for family housing for fiscal year 2008. The committee recommends authorization of $1,009,109,000 for military construction and $1,051,082,000 for family housing for fiscal year 2008.

ITEM OF SPECIAL INTEREST

PLANNING AND DESIGN, AIR FORCE

The committee recommends that, within the authorized amounts for planning and design, the Secretary of the Air Force complete planning and design activities for the following projects:

LEGISLATIVE PROVISIONS

SECTION 2301--AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION PROJECTS

This section would contain the list of authorized Air Force construction projects for fiscal year 2008. The authorized amounts are listed on an installation-by-installation basis. The State list contained in this report is intended to be the binding list of the specific projects authorized at each location.

SECTION 2302--FAMILY HOUSING

This section would authorize new construction and planning and design of family housing units for the Air Force for fiscal year 2008.

SECTION 2303--IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS

This section would authorize improvements to existing units of family housing for fiscal year 2008.

SECTION 2304--AUTHORIZATION OF APPROPRIATIONS, AIR FORCE

This section would authorize specific appropriations for each line item contained in the budget request for fiscal year 2008 for the Air Force. This section would also provide an overall limit on the amount the Air Force may spend on military construction projects.

SECTION 2305--MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 2006 PROJECT

This section would increase the authorization for a fiscal year 2006 military construction project at MacDill Air Force Base, Florida and appropriate conforming military construction amendments.

TITLE XXIV--DEFENSE AGENCIES

SUMMARY

The budget request contained $1,885,512,000 for defense agency military construction (including chemical weapon demilitarization construction) and $48,848,000 for family housing for fiscal year 2008. In addition, the budget request contained $220,689,000 for activities related to prior base realignment and closure (BRAC) activities and $8,174,315,000 for activities related to the 2005 round of BRAC.

The committee recommends authorization of $1,799,112,000 for military construction and $48,848,000 for family housing for defense agencies for fiscal year 2008. In addition, the committee recommends authorization of $230,689,000 for prior BRAC round activities and $8,174,315,000 for BRAC 2005 activities.

ITEMS OF SPECIAL INTEREST

BRAC 2005 IMPLEMENTATION

The committee directs the Comptroller General of the United States to monitor the implementation of recommendations for the 2005 round of realignments and closures of military installations made pursuant to section 2914 of the Defense Base Closure and Realignment Act of 1990 and provide an annual report on progress obtained no later than February 1. A final report shall be provided as to the lessons learned from the 2005 round no later than one year following the end of the Base Realignment and Closure implementation period provided for by section 2904(a)(5) of the Act.

EXPLANATION OF FUNDING ADJUSTMENTS

The committee recommends reduction or elimination of funding for projects contained in the budget request for military construction and family housing. These reductions include:

(1) $84,300,000 for the replacement of fuel storage facilities at Point Loma Annex. The budget request contained $140,000,000 to replace the existing fuel storage, distribution, and support facilities at the Defense Fuel Supply Point.

The committee supports authorizing for appropriations an amount equivalent to the ability of a military department to execute in the year of authorization for appropriations. For this project, the committee believes that the Department of Defense has exceeded their ability to fully expend the funding in fiscal year 2008.

Accordingly, the committee recommends $55,700,000, a reduction of $84,300,000, to support expediting this project.

LEGISLATIVE PROVISIONS

This section would contain the list of authorized defense agencies construction projects for fiscal year 2008. The authorized amounts are listed on an installation-by-installation basis. The State list contained in this report is intended to be the binding list of the specific projects authorized at each location.

SECTION 2402--ENERGY CONSERVATION PROJECTS

This section would authorize the Secretary of Defense to carry out energy conservation projects.

This section would authorize the amount for base realignment and closure activities and projects for fiscal year 2008.

SECTION 2404--AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES

This section would authorize specific amounts for each line item contained in the defense agencies' budgets for fiscal year 2008. This section would also provide an overall limit on the amount the defense agencies may spend on military construction projects.

SUMMARY

The budget request contained $201,400,000 for the North Atlantic Treaty Organization Security Investment Program (NSIP) for fiscal year 2008. The committee recommends authorization of $201,400,000 for NSIP for fiscal year 2008.

LEGISLATIVE PROVISIONS

This section would authorize the Secretary of Defense to make contributions to the North Atlantic Treaty Organization Security Investment Program in an amount equal to the sum of the amount specifically authorized in section 2502 of this Act and the amount of recoupment due to the United States for construction previously financed by the United States.

SECTION 2502--AUTHORIZATION OF APPROPRIATIONS, NATO

This section would authorize $201,400,000 as the U.S. contribution to the North Atlantic Treaty Organization Security Investment Program.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

SUMMARY

The budget request contained $695,201,000 for military construction of guard and reserve facilities for fiscal year 2008. The committee recommends authorization for fiscal year 2008 of $758,201,000 to be distributed as follows:

Army National Guard

$425,891,000

Air National Guard

$111,717,000

Army Reserve

$133,084,000

Naval and Marine Corps Reserve

$59,950,000

Air Force Reserve

$27,559,000

ITEMS OF SPECIAL INTEREST

NIAGARA AIR RESERVE BASE, NEW YORK

The committee believes that timely infrastructure improvements should be made available to support expanding, critical Explosive Ordnance Disposal mission elements and should be provided priority funding in the Future Years Defense Program (FYDP). Furthermore, the committee also believes that the construction of an Armed Forces Regional Readiness Center, necessitates the construction of an expanded dining facility to meet this increased demand. Therefore, the committee urges the Secretary of the Air Force to accelerate projects, such as the programming to design and construct an explosive ordnance disposal facility and a dining facility at Niagara Air Reserve Base, New York, in the next FYDP.

PLANNING AND DESIGN, AIR RESERVE

The committee recommends that, within the authorized amounts for planning and design, the Secretary of the Air Force complete planning and design activities for the following projects:

LEGISLATIVE PROVISION

SECTION 2601--AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND ACQUISITION PROJECTS

This section would authorize appropriations for military construction for the guard and reserve by service component for fiscal year 2008. The State list contained in this report is intended to be the binding list of the specific projects authorized at each location.

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

LEGISLATIVE PROVISIONS

SECTION 2701--EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE SPECIFIED BY LAW

This section would provide that authorizations for military construction projects, repair of real property, land acquisition, family housing projects and facilities, contributions to the North Atlantic Treaty Organization infrastructure program, and Guard and Reserve projects will expire on October 1, 2010, or the date of enactment of an act authorizing funds for military construction for fiscal year 2011, whichever is later. This expiration would not apply to authorizations for which appropriated funds have been obligated before October 1, 2010, or the date of enactment of an act authorizing funds for military construction for fiscal year 2011, whichever is later.

SECTION 2702--EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2005 PROJECTS

This section would extend the authorization for certain fiscal year 2005 military construction projects until October 1, 2008, or the date of enactment of an Act authorizing funds for military construction for fiscal year 2009, whichever is later.

SECTION 2703--EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2004 PROJECTS

This section would extend the authorization for certain fiscal year 2004 military construction projects until October 1, 2008, or the date of enactment of an Act authorizing funds for military construction for fiscal year 2009, whichever is later.

SECTION 2704--EFFECTIVE DATE

This section would provide that Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of this Act shall take effect on October 1, 2007, or upon enactment of this Act, whichever is later.

TITLE XXVIII--GENERAL PROVISIONS

ITEMS OF SPECIAL INTEREST

CARRIER BASING

The committee understands that the Navy has unused capacity at Naval Station Mayport, Florida, and is conducting an environmental impact statement on the feasibility of stationing additional surface ships, including a nuclear aircraft carrier, at Naval Station Mayport. The committee believes that Naval Station Mayport is an important defense asset that should be fully utilized. The committee is concerned that Naval Station Mayport has not previously served as homeport for a nuclear carrier and does not contain the considerable specialized infrastructure necessary to sustain and maintain such a vessel. Therefore, before the Secretary of the Navy recommends the stationing of a nuclear carrier at Naval Station Mayport, the committee directs the Secretary to determine the full range of costs associated with the construction of nuclear infrastructure and port improvements at Naval Station Mayport necessary to support a nuclear carrier, including a detailed assessment of alternative sites, and submit the results of this analysis to the congressional defense committees by October 1, 2007.

DEPARTMENT OF DEFENSE ENERGETICS CENTER VISION 2020

The committee notes that the Base Realignment and Closure 2005 Commission confirmed the Department of Defense's designation of the Naval Surface Warfare Center Indian Head, Maryland, as the energetics center for the Department of Defense. Despite this recommendation, the demonstrated importance of energetics research and construction projects to recapitalize the facilities at Indian Head are not included within the Department of the Navy's most recent Future Years Defense Program (FYDP). The committee strongly encourages the Secretary of the Navy to fully support the `Department of Defense Energetics Center Vision 2020' recapitalization plan at Indian Head by restoring recapitalization projects to the FYDP and including them in future budget requests.

ENERGY CONSERVATION FORUM

The committee is aware that, in the spring of 2006, the Secretary of Defense initiated and continues to lead a monthly interagency seminar program known as the Energy Conservation Forum. The committee is very encouraged that other departments and agencies such as the Department of Energy, the Department of State, the Department of Agriculture, the Environment Protection Agency, and the intelligence community have agreed to actively participate in this important initiative.

The committee acknowledges the considerable efforts of the Energy Conservation Forum and continues to support the Secretary's interagency energy education program, which includes the energy seminar program and energy interagency networks. The committee recognizes that the energy security challenges now faced within the Department of Defense, the U.S. Government as a whole, and the Nation cannot be solved by a single agency. The committee strongly believes that all federal agencies must work together to achieve necessary national energy objectives of conservation and efficiency. Therefore, the committee encourages the Secretary to continue efforts, such as the Energy Conservation Forum, to enhance information interchange as a necessary first step in addressing the complex energy issues facing this Nation.

F-35 BASING AND TRAINING STRATEGY

The F-35 Lightning II Program (also known as the Joint Strike Fighter Program) is the Department of Defense's focal point for defining affordable next generation strike aircraft weapon systems for the Navy, Air Force, Marines, and our allies. Currently, the F-35 is in the system development and demonstration phase and is expected to meet initial operational capability in fiscal year 2012 for the Marine Corps, 2013 for the Air Force and 2015 for the Navy.

The committee supports the 2005 Base Realignment and Closure selection of Eglin Air Force Base (Florida) as the F-35 Initial Joint Training Site and also believes that the joint nature of this site will enhance Department of Defense aviation capabilities. In the determination of future basing decisions, the committee expects the service secretaries to screen assets from other services and fully use existing capabilities to best support our aviation assets. The following criteria should be included in the overall basing criteria:

(3) Proximity, volume, and capability of training ranges and airspace;

(4) Accessible auxiliary training locations;

(5) Installation capabilities; and

(6) Other considerations such as climate and encroachment.

Therefore, the committee directs the Secretary of Defense to submit a report to the congressional defense committees by March 1, 2008. The report shall provide the basing criteria for screening of Department of Defense F-35 assets. The committee also supports a comprehensive training strategy and directs the Secretary of Defense to submit a report to the congressional defense committees by March 1, 2008, which shall address the training requirements for variant, mission, and service-specific certification of combat mission ready status of United States and allied pilots who have completed initial joint training.

LAND USE PLANNING

The committee believes that there are several military installations that have not grown commensurate with the local communities, causing land use constraints on military operations. This is particularly acute in the San Diego, California region. The committee further believes that the Department of Defense has not provided sufficient emphasis on use of land use planning tools that the committee has provided including Enhanced Use Leasing (section 2667 of Title X), Conservation and Cultural Activities (section 2694 of Title X), Conveyance of Property at Military Installations That Are Closed or Realigned To Support Military Construction (section 2869 of title X) and other real estate authorities.

Therefore, the committee directs the Secretary of Defense to prepare a report and submit to the congressional defense committees by February 1, 2008, on land use planning implemented by the Department of Defense that optimizes available real estate. This report will be focused on the San Diego area and include, at a minimum, land use planning tools used during the 2007 fiscal year at each military installation, a description of each project, the funding sources used to support the conveyances, opportunities to partner with other federal agencies, and recommendations for additional authority to optimize real estate commensurate with local community growth. The Department should prepare this comprehensive review of the San Diego, California area to ensure that effective land use planning is being implemented and review opportunities for continued consolidations across the Department.

The committee also directs the Comptroller General to review the report by the Secretary of Defense, and provide separate analysis of the Department's use of land use planning authorities, with particular attention to the San Diego area, to the congressional defense committees by August 1, 2008.

MILITARY CONSTRUCTION PRICING INEQUITIES

The committee remains concerned that the current pricing models used by the Department of Defense understate the overall cost of the military construction program. While the committee understands that the use of the Office of Management and Budget (OMB) inflation factors for construction has understated the construction industry by 10 percent over the last two years, the committee believes that this has the concurrent effect of reducing the scope of the entire military construction program. Although the committee understands that the OMB cost factors used to support the fiscal year 2008 budget request are coincidently close to industry standards, the committee remains concerned about the fluctuation of the account.

Therefore, the committee directs the Secretary of Defense to submit an analysis of the current inflation factors as they compare to industry cost factors to the congressional defense committees by February 1, 2008. This analysis shall include a review of the program over the last five years, the methods that the Department of Defense employs to overcome a diminished program, an analysis of available industry metrics, and recommendations that the Department proposes to reduce the fluctuation of the military construction account.

MILITARY FAMILY HOUSING LEASES IN KOREA

The committee strongly supports the United States-Republic of Korea alliance transformation process and encourages the continued development of this plan. Using the Yongsan Relocation Plan and the Land Partnership Plan as a roadmap, this plan will relocate Unites States Forces Korea Headquarters, and other Army activities, and will consolidate 104 camps and stations into two enduring, main operating locations. Furthermore, the Army is projected to increase the command sponsored tours from 1,665 to 4,300, creating a more stable, productive workforce capable of supporting a dynamic forward presence.

In the fiscal year 2008 budget request, the Department of Defense proposed raising the cost limits for family housing leases in Korea. Unfortunately, this proposal also triggers direct spending that needs to be offset with a corresponding decrease in an entitlement or other direct spending category.

Without prejudice for this important initiative, the committee is very limited in the direct spending authority available to be used as an offset to support an increase in United States Forces Korea family housing units. The committee looks forward to working with the Department to determine a suitable offset to support this endeavor. If this offset cannot be identified, the committee recommends the Department provide sufficient military construction funding in next year's budget submission to support this relocation plan.

RENEWABLE ENERGY AND ENERGY EFFICIENCY

The committee is aware that renewable energy projects are often not as cost effective as non-renewable energy sources. The committee encourages the Department of Defense to consider means for leveraging funds to further enable new renewable energy projects. In particular, the committee understands that Energy Savings Performance Contracts (ESPC) are typically executed with operation and maintenance funds, while the Energy Conservation Investment Program (ECIP) is executed with military construction funds. The committee encourages the Department to consider using an ESPC in combination with an ECIP, should it provide additional opportunity for renewable energy projects.

REPORT ON UNITED STATES MILITARY BASES AND FACILITIES IN AFGHANISTAN

The committee is concerned about the overall lack of information from the Department of Defense (DOD), the military services, and the U.S. Central Command on the nature, scope, and costs of United States military bases and facilities in Afghanistan. Some of the facilities are constructed through support contracts using operation and maintenance funding, while others are built using traditional military construction appropriations or supplemental funding, all of which makes congressional oversight of the accounting for the costs of these facilities difficult. Therefore, the committee directs the Comptroller General to undertake a review of the following:

(1) DOD's strategy for United States bases and the determination matrix as to the types of facilities in Afghanistan;

(2) NATO cost shares associated with DOD's mission; and

(3) DOD's projected costs for the construction and operation of United States bases in Afghanistan.

The committee directs the Comptroller General to submit a report containing the results of this review to the congressional defense committees by February 15, 2008.

RESPONSIVENESS OF THE DEPARTMENT OF DEFENSE TO CONGRESSIONAL REPORTING REQUIREMENTS

The committee supports the Department of Defense's efforts to meet its energy conservation and energy security goals. However, the committee is concerned that the Department has failed to submit required reports to the congressional defense committees regarding energy initiatives, goals, and future plans. Specifically, section 357 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) required a report on the Department's use of biodiesel and ethanol fuel that was due in September 2006, and section 2851 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) required a report on energy performance goals for transportation systems, support systems, utilities, and infrastructure and facilities that was due along with the fiscal year 2008 budget request. While the committee supports providing the Department the tools it needs to implement energy efficiency and security programs, the committee fully expects the Department to be responsive to the committee's requests for information to allow the committee to carry out its oversight responsibilities.

LEGISLATIVE PROVISIONS

SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING CHANGES

SECTION 2801--TEMPORARY AUTHORITY TO SUPPORT REVITALIZATION OF DEPARTMENT OF DEFENSE LABORATORIES THROUGH UNSPECIFIED MINOR MILITARY CONSTRUCTION PROJECTS

This section would authorize the Department of Defense (DOD) to use expanded military construction authorities to rapidly adapt the DOD's laboratory facilities to meet emerging challenges.

SECTION 2802--INCREASED THRESHOLD FOR CONGRESSIONAL NOTIFICATION OF LEASES FOR MILITARY FAMILY HOUSING FACILITIES IN A FOREIGN COUNTRY

This section would raise the dollar threshold for congressional notification of leases for military family housing facilities in a foreign country, as well as, for real property related to family housing facilities in a foreign country.

SECTION 2803--LIMITATIONS ON USE OF ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF MILITARY HOUSING FOR PRIVATIZATION OF TEMPORARY LODGING FACILITIES

This section would authorize an Army lodging privatization pilot project at a specified list of Army installations. Additionally, this section would require the Secretary of the Army and the Comptroller General to submit a report on the effectiveness of the privatization program and a recommendation for the continuance and expansion of the privatization program by June 1, 2009.

This section would authorize the Secretary of Defense to exchange non-excess, reserve component real property and facilities for other federal agencies real property and facilities of equal fair market value.

This section would extend the temporary authority to make or accept cash equalization payments in connection with exchanges of reserve component facilities for three years.

SECTION 2806--EXPANSION TO USE OPERATION AND MAINTENANCE FUNDS FOR CONSTRUCTION PROJECTS OUTSIDE THE UNITED STATES

This section would extend through fiscal year 2008 the authority provided by section 2808 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136), which permits the Secretary of Defense to use operation and maintenance funds to construct the facilities necessary for temporary operational requirements related to a declaration of war, national emergency, or contingency. This section would require advance notification to the congressional defense committees and eliminate the quarterly reporting requirements.

SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION

This section would move section 2677 of title 10, United States Code, into section 2663 of title 10, United States Code, as part of a continuing effort to consolidate and better organize the real property provisions of chapter 159 of title 10, United States Code.

This section would authorize the Secretary of Defense and the secretaries of the military departments to enter into cooperative agreements with State, local, or tribal governments and other entities for the preservation, management, maintenance, and improvement of cultural resources located outside military installations and for the conduct of research regarding cultural resources. The authority to enter into these cooperative agreements would enable the Department of Defense to expend funds related to activities off the installation to mitigate the adverse effects related to undertakings on cultural resources on an installation. This alternative mitigation could be used for compliance with section 106 of the National Historic Preservation Act (Public Law 89-665). Currently, mitigation authority is limited to such cooperative agreements related to cultural resources on military installations.

SECTION 2813--AGREEMENTS TO LIMIT ENCROACHMENTS AND OTHER CONSTRAINTS ON MILITARY TRAINING, TESTING, AND OPERATIONS

This section would clarify that the Department of Defense may contribute resources toward the costs of managing natural resources on parcels of land, in which an interest has been acquired, where there is a demonstrated need to manage such resources to effectively avoid, limit or relieve restrictions to testing, training or operations. This section would also clarify the method of determining the limitation on the portion of acquisition costs that a military department may pay.

SECTION 2814--EXPANSION TO ALL MILITARY DEPARTMENTS OF ARMY PILOT PROGRAM FOR PURCHASE OF CERTAIN MUNICIPAL SERVICES FOR MILITARY INSTALLATIONS

This section would enable the Department of Defense temporary authority to enter into cooperative agreements with servicing municipalities for public work services. This authority would expand a Department of the Army pilot program to the other military services and extend the current expiration date to September 30, 2012.

SECTION 2815--RETENTION OF PROCEEDS FROM ENHANCED USE LEASES AT SELFRIDGE AIR NATIONAL GUARD BASE

This section would direct proceeds from an enhanced use lease at Selfridge Air National Guard Base be fully expended at that installation.

SECTION 2816--PROHIBITION ON COMMERCIAL FLIGHTS INTO SELFRIDGE AIR NATIONAL GUARD BASE

This section would prohibit the use of Selfridge Air National Guard Base by commercial service aircraft.

SUBTITLE C--BASE REALIGNMENT AND CLOSURE

This section would authorize the transfer of funds from the Department of Defense's Base Closure and Realignment (BRAC) account to the Department's Family Housing Improvement Fund, enabling the use of the privatization authorities to meet the family housing requirements associated with the BRAC 2005 recommendations. This section would also allow similar transfers of funds to the Military Unaccompanied Housing Improvement Fund.

SUBTITLE D--LAND CONVEYANCES

SECTION 2831--CONDITIONS ON ACQUISITION OF LAND FOR EXPANSION OF PINON CANYON MANEUVER SITE, COLORADO

This section would provide authority to the Department of the Army to acquire additional land at Pinon Canyon Maneuver Site, Colorado. Land acquisition and leasing would be used to the maximum extent with willing sellers and the use of eminent domain would be established as a last resort land acquisition method. Access to cultural resources and cattle grazing would be allowed to the maximum extent possible.

SECTION 2832--GRANT OF EASEMENT, EGLIN AIR FORCE BASE, FLORIDA

This section would authorize the Secretary of the Air Force to grant the Mid Bay Bridge Authority an easement for a roadway connecting Mid Bay Bridge to Florida State Highway 85.

This section would convey 40 acres at the Lynn Haven Fuel Depot, Lynn Haven, Florida, to Florida State University for the purpose of permitting the University to develop the property as a new satellite campus. The Secretary of the Air Force may accept reduced tuition rates or scholarships as in kind consideration for the value of the property. The Secretary of the Air Force should work closely with the University to determine an appropriate repayment timeline that is agreeable to both parties.

SECTION 2834--ADDITIONAL CONDITIONS ON LEASE OF PROPERTY FOR HEADQUARTERS FACILITY FOR UNITED STATES SOUTHERN COMMAND, FLORIDA

This section would protect the substantial military construction investment on land owned by the State of Florida and ensures that the United States retains reversionary interest in case the Southern Command decides to relocate during the lease period.

This section would clarify the Department of Defense's liability to expend formerly used defense sites funding to support the remediation of the former Nike Missile site for use as habitat for fish and wildlife and as a recreational property for outdoor education and environmental education.

SECTION 2836--LAND EXCHANGE, FORT HOOD, TEXAS

This section would authorize the Secretary of the Army to convey approximately 200 acres at Fort Hood, Texas, to the City of Copperas County, Texas, for the purpose of providing arterial traffic relief for the installation and the local community.

SECTION 2837--TRANSFER OF JURISDICTION, FORT BELVOIR, VIRGINIA

This section would authorize the Secretary of the Army to exchange real property with the Administrator of the General Services Administration. In consideration of transferring up to 72.23 acres of real property in Springfield, Virginia, the General Services Administration would receive an equivalent fair market value of Army real property in the national capital region. This transfer is expected to alleviate traffic associated with the increase in support personnel expected at Fort Belvoir, Virginia.

This section would reinstate California State law considerations to the deliberative process used in determining the final disposition of a toll road for four and one half miles across the northern portion of Camp Pendleton.

SUBTITLE E--ENERGY SECURITY

This section would repeal section 2853 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), which lowered the Department's notification ceiling to $7.0 million, and would thereby restore the notification ceiling to $10.0 million, consistent with the ceiling established for all other government agencies in section 8287 (a)(2)(D)(iii) of title 42, United States Code. The committee believes it is reasonable for the Department of Defense to have the same congressional notification requirement regarding cancellation ceilings for Energy Savings Performance Contracts as the rest of the federal government.

SECTION 2852--REPORT ON OPPORTUNITIES FOR LEVERAGING FUNDS AVAILABLE TO THE DEPARTMENT OF DEFENSE AND TO THE STATES TO PREVENT DISRUPTION IN EVENT OF ELECTRIC GRID OR PIPELINE FAILURES

This section would require the Under Secretary of Defense for Acquisition, Technology, and Logistics to report to the congressional defense committees on approaches to leverage Department of Defense resources with State System Benefit Trust Funds, Clean Air Act State Implementation Funds, and State Homeland Security Critical Infrastructure Grants as a way to accelerate hardening critical functions on and around military and security facilities to prevent disruption in the event of major electric grid or natural gas or petroleum pipeline failures. This section would require the report to be submitted within 180 days after enactment of this Act.

SUBTITLE F--OTHER MATTERS

SECTION 2861--REVISED DEADLINE FOR TRANSFER OF ARLINGTON NAVAL ANNEX TO ARLINGTON NATIONAL CEMETERY

This section would provide more flexibility to the Department of Defense to account for the most recent projections of the Arlington National Cemetery out-year requirements, as well as realignments mandated under the Base Realignment and Closure 2005 process.

SECTION 2862--TRANSFER OF JURISDICTION OVER AIR FORCE MEMORIAL TO DEPARTMENT OF THE AIR FORCE

This section would transfer the Air Force Memorial and the site upon which it is constructed to the administrative jurisdiction, custody and control of the Secretary of the Air Force and empower the Secretary of the Air Force to enter into agreements with appropriate organizations to provide for the management and maintenance of the Air Force Memorial.

SECTION 2863--ESTABLISHMENT OF NATIONAL MILITARY WORKING DOG TEAM MONUMENT ON SUITABLE MILITARY INSTALLATIONS

This section would grant the Secretary of Defense the authority to allow a non-profit group to establish a national monument honoring the service of U. S. military working dogs at Fort Belvoir, Virginia, or another location of the Secretary's choosing.

SECTION 2864--NAMING HOUSING FACILITY AT FORT CARSON, COLORADO, IN HONOR OF THE HONORABLE JOEL HEFLEY, A FORMER MEMBER OF THE U.S. HOUSE OF REPRESENTATIVES

This section would require the Secretary of the Army to designate one of the military family housing areas or facilities constructed on Fort Carson, Colorado, using housing privatization authorities provided by subchapter IV of chapter 169 of title 10, United States Code in honor of The Honorable Joel Hefley, former member of the U.S. House of Representatives.

SECTION 2865--NAMING NAVY AND MARINE CORPS RESERVE CENTER AT ROCK ISLAND, ILLINOIS, IN HONOR OF THE HONORABLE LANE EVANS, A FORMER MEMBER OF THE U.S. HOUSE OF REPRESENTATIVES

This section would designate the Navy and Marine Corps reserve center at Rock Island Arsenal, Illinois, as the `Lane Evans Navy and Marine Corps Reserve Center.'

SECTION 2866--NAMING OF RESEARCH LABORATORY AT AIR FORCE ROME RESEARCH SITE, ROME, NEW YORK, IN HONOR OF THE HONORABLE SHERWOOD L. BOEHLERT, A FORMER MEMBER OF THE U.S. HOUSE OF REPRESENTATIVES

This section would designate the new laboratory building at the Air Force Rome Research Site, Rome, New York, as the `Sherwood Boehlert Center of Excellence for Information, Science and Technology.'

SECTION 2867--NAMING OF ADMINISTRATION BUILDING AT JOINT SYSTEMS MANUFACTURING CENTER, LIMA, OHIO, IN HONOR OF THE HONORABLE MICHAEL G. OXLEY, A FORMER MEMBER OF THE U.S. HOUSE OF REPRESENTATIVES

This section would designate a new administrative building at the Joint Systems Manufacturing Center, Lima, Ohio, as the `Michael G. Oxley Administration and Technology Center.'

This section would designate the Logistics Automation Training Facility, Army Quartermaster and School, Fort Lee, Virginia, as the `General Richard H. Thompson Building.'

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

OVERVIEW

The budget request contained $15.8 billion for atomic energy defense activities. Of this amount, $9.4 billion is for the programs of the National Nuclear Security Administration and $6.4 billion is for environmental and other defense activities. The committee recommends $16.0 billion, an increase of $150.0 million above the request.

ITEMS OF SPECIAL INTEREST

NATIONAL NUCLEAR SECURITY ADMINISTRATION

OVERVIEW

The budget request contained $9.5 billion for the National Nuclear Security Administration for fiscal year 2008. The committee recommends $9.5 billion, the amount of the request.

WEAPONS ACTIVITIES

Future Nuclear Weapons Stockpile and Complex

Reliable Replacement Warhead

The budget request contained $88.8 million within Directed Stockpile Work for the Reliable Replacement Warhead (RRW) program.

As established in the National Defense Authorization Act of Fiscal Year 2006 (Public Law 109-163), the primary objectives of the RRW program are to `increase the reliability, safety, and security of the United States nuclear weapons stockpile,' and `further reduce the likelihood of the resumption of underground nuclear weapons testing.' Public Law 109-163 further established that the RRW program should aim to `remain consistent with basic design parameters by including, to the maximum extent feasible . . . components that are well understood or are certifiable without the need to resume underground nuclear weapons testing.'

The committee believes it is too soon to judge whether the RRW program can achieve these objectives, and notes that findings from two recent National Nuclear Security Administration (NNSA) studies regarding the aging of pits indicate that a critical component of our nuclear weapons may have a longer lifespan than previously recognized. In light of these findings, the committee believes the focus of the RRW program during fiscal year 2008 should be the analysis necessary to describe in detail how the RRW program will achieve these objectives.

In tandem with this analysis, the committee believes the reuse of existing pits warrants examination. The committee notes that the reuse of pits in remanufactured warheads could yield greater confidence in the reliability of such warheads, as the pits would have been previously tested. Such increased confidence should reduce the likelihood that nuclear tests would be required and minimize the need for newly manufactured pits. The committee has included a provision in this title that requires the Administrator for Nuclear Security to assess the feasibility of remanufacturing warheads using existing pits in the RRW program.

The committee also notes that an independent panel of experts commissioned by the American Association for the Advancement of Science (AAAS) concluded in an April 2007 report that `although the RRW could act as a catalyst for modernizing the complex, the process would present significant challenges.' The panel also concluded that a `fundamental question must be answered in developing a long-range plan for the nation's nuclear weapons complex . . . what is the long-term stockpile required by the Department of Defense, and how should the Department of Energy size the capability of its complex to meet those requirements?'

The committee supports establishing clear nuclear weapons requirements before committing to the RRW program, and sees the planned Phase 2a design review and cost study as consistent with this approach. Further, the committee believes the RRW program should only be pursued if it: truly reduces or eliminates the need for nuclear testing; leads to substantial reductions in the nuclear arsenal, including complete dismantlement of the weapons and safe disposal of fissile components; does not introduce new mission or new weapon requirements; reduces the reliance of the United States on nuclear weapons; reduces the long-term cost of maintaining the nuclear weapons complex; and increases nuclear security and decreases the risk of unauthorized launch or detonation.

The committee will monitor the RRW program closely to assess NNSA progress toward achieving these objectives. In addition, the committee expects the report on RRW required by the National Defense Authorization Act of Fiscal Year 2006 (Public Law 109-163) and the results of the planned Phase 2a study to play a crucial role in clarifying the degree to which the RRW program can reach its stated goals.

The committee recommends $68.8 million, a decrease of $20.0 million, for Phase 2a study activities only for RRW.

Consolidated Plutonium Center

The budget request contained $24.9 million for the Consolidated Plutonium Center (CPC), which is described as an element of the Complex 2030 transformation plan. The committee supports the National Nuclear Security Administration's (NNSA) effort to modernize the nuclear weapons complex, but finds that construction of a CPC is only required if the United States moves toward large-scale production of pits. The committee does not believe the need for such large scale processing has been established.

The committee notes that a capability to manufacture limited quantities of pits has been established at Los Alamos National Laboratory (LANL), and an expansion of this capability is supported in the budget request. The committee believes this capability, coupled with proposed funding for the Chemistry and Metallurgy Research Building Replacement (CMRR)-Nuclear Facility, is sufficient for current stockpile needs.

Elsewhere in this title, the committee directs the NNSA to examine the feasibility of remanufacturing warheads with existing pits. Such remanufacture would reduce the requirement for new pit production, and could eliminate the need for a large new pit production facility. The committee concludes that funding for the CPC is premature while the feasibility of a pit reuse approach for RRW is examined. The committee recommends no funding for the CPC.

B61 Life Extension Program

The budget request contained $63.1 million for the B61 Life Extension Program (LEP) account within Directed Stockpile Work. The committee notes that the budget describes these funds as supporting the current LEP, identified as Alt 357, Alt 358/359, but National Nuclear Security Administration (NNSA) planning documents indicate commencement of a Phase 6.2/6.2a study for an additional B61 LEP (Alt 365/366) in fiscal year 2008.

The committee views the initiation of a new B61 LEP (Alt 365/366) as unwarranted while the NNSA examines the feasibility of pit reuse for the remanufacture of warheads. The committee therefore recommends $58.9 million, a decrease of $4.2 million for the B61 life extension program, and directs the Administrator for Nuclear Security to make no funds available for commencement of the new B61 LEP.

Inertial Confinement Fusion Ignition and High Yield Campaign

The budget request contained $412.3 million for the Inertial Confinement Fusion (ICF) Ignition and High Yield Campaign, a decrease of $38.9 million from the fiscal year 2007 request.

ICF target design, production, and assembly activities are critical activities in support of the ICF Ignition and High Yield Campaign target of first ignition in 2010. The committee notes, however, that the fiscal year 2008 budget request for this campaign is insufficient to fulfill the National Nuclear Security Administration's (NNSA) commitment in the National Ignition Campaign Execution Plan and sustain the baseline schedule to deliver a credible ignition campaign starting in 2010.

The committee recommends $427.4 million, an increase of $15.1 million, for target design, production and assembly consistent with the National Ignition Campaign Execution Plan, as well as risk mitigation activities.

Advanced Simulation and Computing Campaign

The budget request contained $585.7 million for the Advanced Simulation and Computing (ASC) Campaign, a decrease of $32.2 million from the fiscal year 2007 request.

The committee urges NNSA to reassess its high-performance computing acquisition strategy to ensure the compatibility of the acquisition strategy with the objectives of the ASC Campaign and the Stockpile Stewardship Program.

The committee recommends $590.7 million, an increase of $5.0 million in the ASC Campaign, to address the increased demand for computational resources to support National Ignition Facility experiments and other Stockpile Stewardship priorities.

Engineering Campaign

The budget request contained $80.6 million for the Enhanced Surveillance subprogram within the Engineering Campaign.

Enhanced Surveillance provides analysis to support weapon replacement and refurbishment decisions, and to develop advanced diagnostics and predictive capabilities for early identification and assessment of stockpile aging concerns. The committee notes that the request is below the fiscal year 2007 request, despite a backlog in the surveillance program and despite the critical nature of these activities.

The committee recommends $84.6 million, an increase of $4.0 million, to bolster the ability of the National Nuclear Security Administration to make critical stockpile maintenance and modernization decisions.

The committee is concerned that the fiscal year 2008 request contained a $23.6 million decrease from the fiscal year 2007 request for RTBF, and a $44.5 million decrease from the fiscal year 2007 request in the Operations of Facilities account. At this funding level, the committee understands that multiple facilities in the weapons complex will be unable to meet their base programs for maintenance of facilities. The committee encourages the National Nuclear Security Administration (NNSA) to include in future RTBF budget requests enough funds to adequately support the maintenance budgets of its facilities.

The committee recommends $111.1 million, an increase of $15.0 million for Pantex within the Operations of Facilities account for plant infrastructure repair. The committee expects this increase to be executed in a manner consistent with the priorities of both the site comprehensive plan and the Complex 2030 transformation plan prepared by the NNSA as required by section 3111 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364).

The committee also recommends $201.1 million, an increase of $10.0 million for the Y-12 complex, to include: $5.0 million within Construction for Project 06-D-140 for the Uranium Processing Facility, and $5.0 million within the Operations of Facilities account for plant infrastructure repair, to be executed in a manner consistent with the priorities of both the site comprehensive plan and the Complex 2030 transformation plan prepared by the NNSA as required by section 3111 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364).

DEFENSE NUCLEAR NONPROLIFERATION

OVERVIEW

The committee fully supports the goals of NNSA's nonproliferation programs. The committee emphasizes, consistent with the findings of the 9-11 Commission, that such programs are critical to United States national security and must be a top national security priority. The committee is therefore seriously concerned that lack of effective policy guidance and leadership, and programmatic and funding constraints, have limited the progress of NNSA and other U.S. nonproliferation programs in recent years. The committee believes there must be a strong national commitment to reinvigorate these programs, in part through increased funding that will accelerate, expand, and strengthen existing programs and enable the development of new programs and projects.

The committee is aware that certain NNSA nonproliferation programs have in past years encountered impediments to timely obligating and executing the full amount of authorized and appropriated funds, and that certain programs currently encounter such impediments and therefore maintain unobligated and uncosted balances. In addition to a lack of effective policy guidance and leadership, and limits on program scope and funding, such impediments include practical inefficiencies, lack of staff capacity and resources, and lack of cooperation with other countries.

The committee urges NNSA to work immediately to eliminate any impediments to timely obligating and executing funds that may be authorized to be appropriated for NNSA's nonproliferation programs. In addition, elsewhere in this Act the committee would authorize the repeal and modification of certain statutory limits to executing funds for NNSA nonproliferation programs while increasing oversight of programs, and would authorize funds to expand and strengthen staff capacity, capabilities and resources relating to the implementation and management of programs. As a result, the committee expects any additional funds that it recommends for NNSA's nonproliferation programs under this Act will be obligated and executed in a timely manner.

The committee recommends $1,817.6 million, an increase of $145.0 million. In addition, the committee recommends an increase of $5.0 million for the NNSA Office of the Administrator for Defense Nuclear Nonproliferation program direction.

National Nuclear Security Administration Office of the Administrator

The budget request contained $394.7 million for the National Nuclear Security Administration (NNSA) Office of the Administrator. The committee is concerned by reports of limited staff capacity and resources for implementation of critical NNSA nonproliferation programs, and about the inability to schedule necessary travel to such program sites. Given these concerns, the committee recommends $399.7 million, an increase of $5.0 million. The committee intends this increase for NNSA Defense Nuclear Nonproliferation to expand and strengthen staff capacity, capabilities and resources relating to NNSA nonproliferation programs, and to undertake necessary travel to such program sites.

Nonproliferation, Research and Development

The budget request contained $265.2 million for Nonproliferation Research and Development (R&D). The committee fully supports the goals of the R&D program, and notes that the program is the sole remaining Untied States Government capability for long-term nuclear nonproliferation research and development. The committee emphasizes the importance of expanding U.S. scientific skills and resources and improving U.S. Government capabilities relating to both short and long-term innovative nonproliferation research and development that will maintain U.S. technological advantage in this area.

The committee recommends $280.2 million, an increase of $15.0 million, as follows: (1) $13.0 million for the development of technologies to detect and analyze activities relating to the global proliferation of weapons of mass destruction, including plutonium reprocessing, highly-enriched uranium enrichment, and special nuclear material movement; and (2) $2.0 million for nuclear explosion monitoring.

Radiation Detection Technology

The committee continues to encourage the National Nuclear Security Administration to continue to work closely with the Department of Homeland Security's Domestic Nuclear Detection Office on the research and development of radiation detection technology, in order to ensure there is no duplication of research efforts, but rather a collaborative complementary approach to research in areas of common interest.

The committee emphasizes that it continues to support the role of the Department of Energy National Nuclear Security Administration in the construction of the Capabilities Replacement Laboratory at the Pacific Northwest National Laboratory, which would house critical capabilities for national security missions. The committee further emphasizes its concern that the budget request for fiscal year 2008 contained no funds for the Capabilities Replacement Laboratory project. The committee strongly recommends that the budget request for fiscal year 2009 include funds sufficient to complete the Capabilities Replacement Laboratory project in February 2011.

Nonproliferation and International Security

The budget request contained $124.9 million for Nonproliferation and International Security (NIS). The committee fully supports the goals of the NIS program, and recommends $147.9 million, an increase of $23.0 million, as follows: (1) $5.0 million for technical support to the Six-Party process on the denuclearization of the Democratic People's Republic of Korea; and for the application and deployment of technologies to detect the proliferation of weapons of mass destruction (WMD) and verify WMD dismantlement; (2) $15.0 million to strengthen nuclear safeguards and WMD export control systems in foreign countries; to train border, customs and other officials in foreign countries to detect and prevent theft or other illicit transfer of WMD or WMD-related materials; and to re-direct displaced scientists and personnel with expertise relating to WMD research and development to sustained civil employment, including in Iraq, Libya and Russia; and (3) $ 3.0 million for activities relating to the Proliferation Security Initiative and other WMD interdiction programs.

International Materials Protection and Cooperation

The budget request contained $371.8 million for International Materials Protection and Cooperation (MPC&A). The committee fully supports the goals of the MPC&A program and recommends $401.8 million, an increase of $30.0 million, as follows: (1) $3.0 million to reduce the risk of theft and proliferation of weapons-usable nuclear materials across the Russian Federation by consolidating excess highly-enriched uranium and plutonium into fewer more secure locations in Russia, and by converting Russian highly-enriched uranium into low-enriched uranium; (2) $7.0 million to ensure the sustainability of weapons of mass destruction (WMD) nonproliferation programs in Russia, in part by addressing the concerns and recommendations of the Government Accountability Office in its report of February 2007 titled `Progress Made in Improving Security at Russian Nuclear Sites, but the Long-Term Sustainability of U.S. Funded Security Upgrades is Uncertain'; and (3) $20.0 million for the Second Line of Defense Megaports program in order to implement the Security and Accountability for Every Port Act of 2006 (SAFE Act) and to deploy and support radiation detection equipment at key ports of transit, which screen cargo bound for the United States and deter, detect, and interdict illicit transfers of materials that could be used in WMD or a radiological dispersion device, known as a `dirty bomb'.

Second Line of Defense

The committee continues to encourage the National Nuclear Security Administration to closely coordinate its Second Line of Defense efforts to deter, detect and interdict illicit transfers of nuclear and radioactive materials at border crossings and ports with the efforts of any other relevant United States agency or department, including the Department of Homeland Security and the Department of Defense.

Global Threat Reduction Initiative

The budget request contained $119.6 million for the Global Threat Reduction Initiative (GTRI). The committee fully supports the goals of the GTRI program and recommends $196.6 million, an increase of $77.0 million, as follows: (1) $5.0 million to eliminate weapons-usable highly-enriched uranium by developing alternative low-enriched uranium fuels, and by converting research and test reactors from the use of highly-enriched uranium to low-enriched uranium in Asia and elsewhere; (2) $2.0 million to establish a United States program to develop alternative materials for radiological sources that could be used in a radiological dispersion device, known as a `dirty bomb', and to eliminate a backlog of excess and unwanted domestic radiological sources within U.S. borders; (3) $40.0 million to secure vulnerable radiological sites across the Russian Federation, Asia, Africa, Latin America, and Europe; to recover unsecured radiological sources in Asia; to remove unsecured radiological sources across Russia; and for activities that address concerns and recommendations of the Government Accountability Office, in its report of March 13, 2007 titled `Focusing on the Highest Priority Radiological Sources Could Improve DOE's Efforts to Secure Sources in Foreign Countries'; and (4) $30.0 million to remove and dispose of highly-enriched uranium and plutonium, including in Africa; and to develop mobile equipment that enables rapid-response teams to quickly secure and remove nuclear materials and denuclearize comprehensive nuclear weapons programs.

Fissile Materials Disposition

Disposition of Surplus Plutonium

The budget request contained $609.5 million for the United States Surplus Fissile Materials Disposition program, including $333.8 million for construction of the mixed oxide (MOX) fuel fabrication facility.

The committee continues to fully support the goals of the United States Surplus Fissile Materials Disposition program, which include disposition of U.S. surplus weapons-grade plutonium and use of the MOX facility for such plutonium disposition. The committee views disposition of surplus weapons-grade plutonium as consistent with the national security interests of the United States. Such plutonium disposition will allow the nation to improve the domestic management and security of our remaining stocks of weapons-grade plutonium and demonstrate to the international community our commitment to permanently eliminating materials that could be used for nuclear weapons.

On April 4, 2007, the Department of Energy (DOE) submitted the report required by the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), containing: (1) an independent cost estimate for the U.S. Surplus Fissile Materials Disposition program and facilities; (2) a written certification that the Department intends to use the MOX facility for U.S. plutonium disposition regardless of the future direction of the Russian Surplus Fissile Materials Disposition program; and (3) a corrective action plan for addressing the issues raised by the DOE Inspector General in the December 2005 report titled `The Status of the Mixed Oxide Fuel Fabrication Facility.'

The committee has reviewed these documents and concludes, as it did in the committee report (H. Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007, that `moving forward expeditiously with construction and operation of the U.S. MOX facility will significantly reduce the costs and risks associated with managing domestic weapons-grade plutonium.'

The committee recommends $609.5 million for the U.S. Surplus Fissile Materials Disposition program, including $333.8 million for construction of the MOX facility, the amount of the budget request.

The committee continues to fully support the goals of the Russian Surplus Fissile Materials Disposition program, which include disposition of the Russian Federation's surplus weapons-grade plutonium. In addition, the committee is generally pleased with the progress of the Department of Energy's nonproliferation programs with Russia, and emphasizes the importance of these programs to U.S. national security goals.

On April 4, 2007, the Department submitted a report that describes the following developments relating to finalization of an agreement with Russia on the path forward for Russian plutonium disposition: the United States and Russia have formally reaffirmed their joint commitment to plutonium disposition pursuant to the 2000 Plutonium Disposition and Management Agreement (2000 Agreement); the United States and Russia formally resolved liability protections for U.S.-funded work in Russia relating to plutonium disposition; a U.S.-Russian joint experts group produced a report that sets forth cost and schedule assessments for initial plutonium disposition by Russia and implementation plans for Russia's longer-term plutonium disposition program; and Russia is currently considering the joint experts group report and working toward a formal decision regarding its technical approach to plutonium disposition.

Although the committee appreciates the recent developments described in DOE's report, that document does not fully address all of the elements of the report on Russian plutonium disposition required by the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364). The committee expects that the required report will be submitted to the relevant committees at the earliest possible date.

The committee is also concerned by the remaining lack of certainty on issues relating to the path forward for Russian plutonium disposition, including Russia's technical disposition method, Russian funding, and any cost-sharing arrangements. The committee urges the Department to resolve all outstanding issues relating to Russian plutonium disposition program, and to finalize an agreement with Russia regarding this program that is consistent with the 2000 Agreement and its nonproliferation goals, and ensures any reactors used under the agreement do not produce plutonium and include necessary monitoring and inspection controls.

Given the committee's concerns described above, the committee recommends no funds for the Russian Surplus Fissile Materials Disposition program, the amount of the budget request. Further, as recommended in the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), the committee recommends that of those funds available from prior fiscal years for the program, no more than $20.0 million shall be available for expenditure until 30 days after the Secretary of Energy has provided to the congressional defense committees the report described above. The committee notes that there continue to be adequate prior year funds available for the program in the event that Russia and the United States agree on a path forward for Russian plutonium disposition; are prepared to resume cooperative work on a Russian plutonium disposition program that is consistent with the 2000 Agreement and its nonproliferation goals; and are fully committed to such a program.

ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

OVERVIEW

The budget request contained $6,419.9 million for environmental and other defense activities.

The committee recommends $6,419.9 million, the same as the budget request.

Salt Waste Processing Facility

The budget request contained $131.0 million for the Salt Waste Processing Facility at the Savannah River Site in South Carolina.

The committee is aware of concerns raised by the Defense Nuclear Facilities Safety Board regarding the geotechnical investigation, the structural evaluation, and quality assurance measures being conducted for the Department of Energy's future Salt Waste Processing Facility. This facility, when completed, will process salt waste from high-level waste tanks at the Savannah River Site. After processing, the resulting concentrated high-level waste will be sent to the Defense Waste Processing Facility for vitrification and ultimate disposal in a long-term geologic repository, and the decontaminated salt solution will be sent to the Saltstone Facility for disposal at the Savannah River Site.

According to the Safety Board, the geotechnical investigation reports for the Salt Waste Processing Facility are significantly behind schedule for the current stage of the facility design. The facility is nearing Critical Decision 2, Approval of Performance Baseline, yet a final determination of the design basis earthquake and the design settlement that could result from an earthquake has not been made, and further errors and deficiencies in the structural analysis need to be resolved. The committee understands that the Department is committed to resolving the Safety Board's concerns prior to reaching Critical Decision 2, at which time definitive cost, scope, and schedule baselines should have been developed. The committee appreciates the Department's efforts and fully expects the Department to incorporate lessons learned from its other large and complex construction projects that have recently experienced cost increases and schedule delays resulting from technical and managerial issues.

The committee recommends $131.0 million for the Salt Waste Processing Facility, the amount of the budget request.

Waste Treatment and Immobilization Plant

The budget request contained $690.0 million for the Waste Treatment and Immobilization Plant at the Hanford Site in Washington.

The committee recognizes that significant steps have been taken to address the technical and managerial problems associated with the Department of Energy's Waste Treatment and Immobilization Plant and is encouraged by the recent establishment of a new cost and schedule baseline for the project. The committee reminds the Department of the legislative requirement for the Secretary of Energy to certify to the congressional defense committees that the earned value management system for the project has been recommended for acceptance by the Defense Contract Management Agency and that the seismic and ground motion criteria are final. The committee expects that if these steps are fulfilled the Department will be in a position to effectively execute this program.

The committee recommends $690.0 million for the Waste Treatment and Immobilization Plant, the amount of the budget request.

Federal Facility Agreement and Consent Order Milestones

The committee is aware that the Department of Energy's Office of Environmental Management might be unable to meet 40 to 50 of a total of 210 federal facility agreement or consent order milestones enforceable in fiscal year 2008. The at-risk milestones apply to environmental cleanup activities at Los Alamos National Laboratory in New Mexico, the Oak Ridge Reservation in Tennessee, the Hanford Site in Washington, and the Savannah River Site in South Carolina. The committee is generally supportive of the Department's risk-based prioritization of environmental cleanup activities, but encourages the Department to continue to strive to meet all federal facility agreement and consent order milestones. When funding or technical challenges impact the Department's ability to meet a milestone, the Committee encourages the Department to continue to communicate openly with the States and make adjustments accordingly.

Defense Nuclear Waste Disposal

The budget request contained $292.0 million within defense nuclear waste disposal for the Yucca Mountain Project.

The committee continues to support the need for a permanent deep geologic repository for high level radioactive waste.

The committee recommends $292.0 million for defense nuclear waste disposal, the amount of the budget request.

LEGISLATIVE PROVISIONS

SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS

SECTION 3101--NATIONAL NUCLEAR SECURITY ADMINISTRATION

This section would authorize funds for the National Nuclear Security Administration for fiscal year 2008, including funds for weapons activities, defense nuclear nonproliferation programs, naval reactor programs, and the Office of the Administrator.

SECTION 3102--DEFENSE ENVIRONMENTAL CLEANUP

This section would authorize funds for defense environmental cleanup activities for fiscal year 2008.

SECTION 3103--OTHER DEFENSE ACTIVITIES

This section would authorize funds for other defense activities for fiscal year 2008.

SECTION 3104--DEFENSE NUCLEAR WASTE DISPOSAL

This section would authorize funds for defense nuclear waste disposal for fiscal year 2008.

SUBTITLE B--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS

SECTION 3111--STUDY ON USING EXISTING PITS IN THE RELIABLE REPLACEMENT WARHEAD PROGRAM

This section would require the Administrator for Nuclear Security to assess the feasibility of remanufacturing warheads using existing pits in the Reliable Replacement Warhead (RRW) program; determine the advisability of proceeding with the remanufacture of warheads using existing pits prior to the remanufacture of warheads using newly manufactured pits; and convey the findings in a report to the congressional defense committee to be submitted by February 1, 2008. The report shall be unclassified, but the Administrator may also deliver a classified version of the report to the congressional defense committees.

This section would require the National Nuclear Security Administration (NNSA) to analyze the feasibility, costs and benefits of providing protective forces for the nuclear weapons complex through contract employees, federal employees, or a combination of the two, and submit a report describing the results of the study to the congressional defense committees by March 1, 2008.

SECTION 3113--REPORT ON RETIREMENT AND DISMANTLEMENT OF NUCLEAR WARHEADS

This section would require the Administrator for Nuclear Security to submit a dismantlement report to the congressional defense committees by February 1, 2008. This report shall include: (1) the current plan and schedule for retirement and dismantlement of those warheads that have not yet been retired and dismantled but are not part of the nation's enduring stockpile; (2) an assessment of the capacity of the Pantex and Y-12 plants to accommodate an accelerated schedule for dismantlement of such warheads; and (3) an assessment of the feasibility of accelerating the dismantlement schedule for such warheads.

This section would require the Administrator for Nuclear Security to conduct an assessment of the respective risks posed by threats to the physical and cyber security of the weapons complex; an assessment of security technologies and equipment employed throughout the weapons complex; and a description of the methods used by the Department of Energy to prioritize investments among physical and cyber security programs and activities. This section also would require an assessment of security technologies employed throughout the weapons complex. This assessment shall consider the age and maintenance status of security technologies at each NNSA site, and be accompanied by a plan for the lifecycle maintenance and replacement of security technologies. These assessments should be consolidated and submitted in a report to the congressional defense committees by February 1, 2008.

SECTION 3115--DEPARTMENT OF ENERGY REPORT ON PLAN TO STRENGTHEN AND EXPAND INTERNATIONAL RADIOLOGICAL THREAT REDUCTION PROGRAM

This section would require the Secretary of Energy to submit to Congress, within 60 days after the enactment of this Act, a report that sets forth a specific plan for strengthening and expanding the Department of Energy Materials Protection, Control, and Accounting program. This plan would include actions to address the concerns raised, and recommendations made, by the Government Accountability Office in its report of February, 2007, titled `Progress Made in Improving Security at Russian Nuclear Sites, but the Long-Term Sustainability of U.S. Funded Security Upgrades is Uncertain.'

SECTION 3116--DEPARTMENT OF ENERGY REPORT ON MATERIALS COOPERATION CONTROL AND ACCOUNTING PROGRAM

This section would require the Secretary of Energy to submit to Congress, within 60 days after the enactment of this Act, a report that sets forth a specific plan for strengthening and expanding the Department of Energy International Radiological Threat Reduction Program under the Global Threat Reduction Initiative. This plan would include actions to address the concerns raised, and recommendations made, by the Government Accountability Office in its report of March 13, 2007 titled `Focusing on the Highest Priority Radiological Sources Could Improve DOE's Efforts to Secure Sources in Foreign Countries.'

SECTION 3117--AUTHORITY TO USE INTERNATIONAL NUCLEAR MATERIALS PROTECTION AND COOPERATION FUNDS OUTSIDE THE FORMER SOVIET UNION

This section would modify certain presidential certification and congressional notification requirements and repeal a funding limitation regarding the use of International Nuclear Materials Protection and Cooperation program funds for programs outside the former Soviet Union, while increasing oversight of such programs. This section would be consistent with the recommendations of the 9-11 Commission regarding the need to expand, strengthen, and otherwise support certain threat reduction and nonproliferation programs.

This section would amend section 3686 of the Energy Employees Occupational Illness Compensation Program Act (EEOICPA) of 2000 (Public Law 106-398) to extend the life of the Office of the Ombudsman and expand its authority.

The Energy Employees Occupational Illness Compensation Program Act (EEOICPA) was enacted as part of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398). The Office of the Ombudsman was established by amendments to EEIOCPA contained in the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (P.L. 108-375). As provided by EEOICPA, as amended, the Office of the Ombudsman would sunset on October 28, 2007. This section would repeal the sunset provision and grant the Office of Ombudsman authority to contract for expert services to assist in the execution of its duties, where appropriate. Additionally, this section would require that funding for the ombudsman must be provided by discretionary appropriations provided subsequent to enactment of this Act.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

OVERVIEW

The budget request contained $22.5 million for the Defense Nuclear Facilities Safety Board for fiscal year 2008. The committee recommends $22.5 million, the amount of the budget request.

LEGISLATIVE PROVISIONS

SECTION 3201--AUTHORIZATION

This section would authorize funds for the Defense Nuclear Facilities Safety Board for fiscal year 2008.

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

ITEMS OF SPECIAL INTEREST

BERYLLIUM SHORTFALLS

The committee is concerned about forecasts that show depletion of beryllium in the National Defense Stockpile by 2010. Without necessary mining and manufacturing capabilities within the United States, the defense and space industrial base will be without essential resources to produce many critical weapons systems and hardware components including, but not limited to, the Global Hawk Sensor, Trident upgrade and various guidance and optical components.

The committee is aware of a plan to establish a new beryllium refinery and manufacturing facility that would mitigate the shortfalls of stockpiled beryllium. The committee notes that significant increases in estimated construction costs for that facility have created a $25.0 million gap in funding needed to execute the approved strategy. The committee strongly encourages the Department of Defense to reevaluate the allocation of funds across the Future Years Defense Plan for beryllium refining and manufacturing facilities in order to ensure the United States is not at a strategic disadvantage as a result of beryllium shortages in the coming years.

LEGISLATIVE PROVISIONS

SECTION 3301--AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE FUNDS

This section would authorize $44.8 million from the National Defense Stockpile Transaction Fund for the operation and maintenance of the National Defense Stockpile for fiscal year 2008. This section would also permit the use of additional funds for extraordinary or emergency conditions 45 days after Congress receives notification.

SECTION 3302--REVISIONS TO REQUIRED RECEIPT OBJECTIVE FOR PREVIOUSLY AUTHORIZED DISPOSALS FROM THE NATIONAL DEFENSE STOCKPILE

This section would authorize revisions on limitations in asset sales contained in section 3303 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201) as amended by section 3402(f) of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65), and section 3304(c) of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107).

This section would also authorize revisions on limitations in asset sales contained in section 3305(a)(5) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85), as amended by section 3305 of the National Defense Authorization Act for Fiscal Year for Fiscal Year 2002 (Public Law 107-107).

This section would further authorize revisions on limitations in asset sales contained in section 3303(a) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Public Law 105-261), as amended by section 3302 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375), and section 3302(a) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163).

TITLE XXXIV--NAVAL PETROLEUM RESERVES

LEGISLATIVE PROVISIONS

SECTION 3401--AUTHORIZATION OF APPROPRIATIONS

This section would authorize $17.3 million for fiscal year 2008 for operation and maintenance of the Naval Petroleum and Oil Reserves.

TITLE XXXV--MARITIME ADMINISTRATION

ITEMS OF SPECIAL INTEREST

MARITIME GUARANTEED LOAN PROGRAM

The committee is disappointed that the budget request contained no funds, required by section 502(5) of the Federal Credit Reform Act of 1990 (Public Law 101-508), for expenses relating to the loan guarantee program authorized by title XI of the Merchant Marine Act of 1936 (46 U.S.C. Chap 537). The committee notes that, in accordance with section 101 of the Merchant Marine Act of 1936, it is necessary to the national defense and development of commerce that the United States shall have a merchant marine `sufficient to carry its waterborne commerce . . . composed of the best-equipped, safest, and most suitable types of vessels, constructed in the United States . . .', and further `it is hereby declared to be the policy of the United States to foster the development and encourage the maintenance of such a merchant marine.'

The committee notes that the National Defense Authorization Act of 2004 (Public Law 108-136) authorized appropriations at $30.0 million per year through fiscal year 2008 for this program along with $6.0 million per year for expenses relating to administration of the program.

During testimony before the Subcommittee on Seapower and Expeditionary Forces, the Maritime Administrator testified that it was the position of the Department of Transportation that title XI loan guarantees were a form of corporate subsidy and that only administrative expenses associated with maintenance of outstanding loan guarantees were requested for fiscal year 2008.

The committee believes that this view is inconsistent with established policy of the United States. The committee believes that a revitalized title XI loan guarantee program could reverse the declining trend in U.S. commercial shipyards; open new markets in the maritime coast-wide trade, particularly short-sea shipping, which has the potential to remove significant amounts of overland freight on the nations highways; and provide a more robust fleet of domestically constructed, owned, and operated vessels available for use by the government in time of war or national emergency.

The committee directs the Secretary of Transportation to submit a report, by July 31, 2007, to the House Committee on Armed Services, the Senate Committee on Appropriations, the House Committee on Appropriations, and the Senate Committee on Commerce detailing the current status of the maritime guaranteed loan program. This report is in addition to any other reporting requirement required by law. The report shall include a detailed listing of all loan guarantees approved since January 1, 1990, divided by loan guarantees that have proven successful, or are currently successful, and those loan guarantees that ended in default of the obligor and subsequent liability to the government. The report shall also include an analysis of the types of vessels or maritime trade, which have a high success rate in repayment of guaranteed loans. Additionally, the Secretary shall include the number and type of applications for loan guarantees submitted since January 1, 2004, and the reason the application was approved or denied.

STUDENT INCENTIVE PAYMENTS AT STATE MARITIME ACADEMIES

The budget request contained $1.9 million for direct payments to the state maritime academies, but contained no funds for the student incentive payment program (SIP). The committee understands that the budget request for fiscal year 2008 shifts funds from the student incentive payments (SIP) account to the direct payment account for the maritime academies.

The committee believes that the graduates of the state maritime academies are essential to the United States Merchant Marine fleet as well as the ships of the Military Sealift Command and that many midshipmen participate in the SIP program as a way of offsetting the cost of their education at the state maritime academies. Midshipmen who participate in the SIP program incur service obligations in accordance with section 51509 of title 46, United States Code, which includes a minimum of 3 years of service as a merchant marine officer.

The committee is concerned that shifting this funding to the direct payment account will reduce the programs effectiveness and may ultimately lead to fewer midshipmen accepting commissions in the merchant marine.

The committee directs the Administrator of the Maritime Administration, after consultation with the presidents of the various state maritime academies, to submit a report by July 31, 2007, to the House Committee on Armed Services and the Senate Committee on Commerce a report on the status of the SIP. The report shall include the total number of students currently enrolled in the SIP, by academy and graduation year; the method and schedule for SIP payments; the process for acceptance into the program; and an analysis of the programs effectiveness in encouraging midshipmen to pursue a carrier in the merchant marine. The Administrator shall include, as enclosures to the report, any written opinions or correspondence the presidents of the state maritime academies wish to submit with regard to this program.

LEGISLATIVE PROVISIONS

SECTION 3501--AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 2008

This section would authorize a total of $135.3 million for fiscal year 2008. Of the funds authorized, $13.9 million would be available for capital improvements at the Merchant Marine Academy, and $8.2 million would be available for the repair of school ships at the state maritime academies. In addition, $20.0 million would be authorized for disposal of vessels in the nonretention fleet.

This section would require the Secretary of Transportation to transfer no fewer than three combatant vessels in the nonretention fleet of the Maritime Administration for disposal by scrapping to the Secretary of the Navy during fiscal year 2008. This section would accelerate the disposal of vessels by using the Navy Disposal Program, which has substantial experience in disposing of obsolete vessels in an environmentally sound manner.

DEPARTMENTAL DATA

The Department of Defense requested legislation, in accordance with the program of the President, as illustrated by the correspondence set out below:

DEPARTMENT OF DEFENSE AUTHORIZATION REQUEST

Department of Defense,

Office of General Counsel,

Washington, DC, February 6, 2007.

Hon. NANCY PELOSI,
Speaker of the House of Representatives,
Washington, DC.

DEAR MADAM SPEAKER: The Department of Defense requests that the Congress enact the enclosed National Defense Authorization Bill for Fiscal Year 2008.

The purpose of each proposal is stated in the accompanying section-by-section analysis.

In the coming weeks, the Department will propose a few additional legislative initiatives for inclusion in the same bill.

The Office of Management and Budget advises that there is no objection, from the standpoint of the Administration's program, to the presenting of these legislative proposals for your consideration and the consideration of the Congress.

Sincerely,

William J. Haynes II,

General Counsel.

Enclosure: As Stated.

-

Department of Defense,

Office of General Counsel,

Washington, DC, March 1, 2007.

Hon. NANCY PELOSI,
Speaker of the House of Representatives,
Washington, DC.

DEAR MADAM SPEAKER: The Department of Defense requests that the Congress enact the enclosed legislative proposals as part of the National Defense Authorization Bill for Fiscal Year 2008.

The purpose of each proposal is stated in the accompanying section-by-section analysis.

The Office of Management and Budget advises that there is no objection, from the standpoint of the Administration's program, to the presenting of these legislative proposals for your consideration and the consideration of the Congress.

Sincerely,

William Haynes II,

General Counsel.

Enclosure: As Stated.

-

Department of Defense,

Office of General Counsel,

Washington, DC, March 28, 2007.

Hon. NANCY PELOSI,
Speaker of the House of Representatives,
Washington, DC.

DEAR MADAM SPEAKER: The Department of Defense requests that the Congress enact the enclosed legislative proposals as part of the National Defense Authorization Bill for Fiscal Year 2008.

The purpose of each proposal is stated in the accompanying section-by-section analysis.

The Office of Management and Budget advises that there is no objection, from the standpoint of the Administration's program, to the presenting of these legislative proposals for your consideration and the consideration of the Congress.

Sincerely,

William J. Haynes II,

General Counsel.

Enclosure: As Stated.

-

Department of Defense,

Office of General Counsel,

Washington, DC, May 2, 2007.

Hon. NANCY PELOSI,
Speaker of the House of Representatives,
Washington, DC.

DEAR MADAM SPEAKER: The Department of Defense requests that the Congress enact the enclosed legislative proposals as part of the National Defense Authorization Bill for Fiscal Year 2008.

The purpose of each proposal is stated in the accompanying section-by-section analysis.

The Office of Management and Budget advises that there is no objection, from the standpoint of the Administration's program, to the presenting of these legislative proposals for your consideration and the consideration of the Congress.

Sincerely,

William J. Haynes II,

General Counsel.

Enclosure: As Stated.

COMMUNICATIONS FROM OTHER COMMITTEES

DEAR MR. CHAIRMAN: I am writing to you concerning the bill, H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. There are certain provisions in the legislation which fall within the Rule X jurisdiction of the Committee on Foreign Affairs.

In the interest of permitting your Committee to proceed expeditiously to floor consideration of this important bill, I am willing to waive this Committee's right to sequential referral. I do so with the understanding that by waiving consideration of the bill, the Committee on Foreign Affairs does not waive any future jurisdictional claim over the subject matters contained in the bill which fall within its Rule X jurisdiction. I request that you urge the Speaker to name Members of this Committee to any conference committee which is named to consider any such provisions.

In addition, I note that one provision of this legislation is also contained in H.R. 1, Implementing the 9/11 Commission Recommendations Act of 2007. I understand that you will continue to support the inclusion of that provision in H.R. 1. Finally, I note that there are a number of provisions relating to Afghanistan and Iraq that will likely be included in legislation reported by the Committee on Foreign Affairs. I understand that you will give due consideration to waiving consideration of such provisions in legislation to be considered in the future by the Committee on Foreign Affairs, and that we will work together as any such legislation moves through the legislative process.

I appreciate your cooperation on these matters, and I would ask that you place this letter into the Committee Report on H.R. 1585.

DEAR MR. CHAIRMAN: Thank you for your letter regarding H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. I agree that the Committee on Foreign Affairs has valid jurisdictional claims to certain provisions in this important legislation, and I am most appreciative of your decision not to schedule a mark-up of this bill in the interest of expediting consideration. I concur that by agreeing to waive consideration of certain provisions of the bill, the Committee on Foreign Affairs is not waiving its jurisdiction over these matters.

With regard to the section entitled `Repeal and Modifications of Limitations on Assistance for Prevention of Weapons of Mass Destruction, Proliferation, and Terrorism,' which is contained in H.R. 1, I will continue to support the inclusion of this provision in that legislation. I will also consider waiving the Committee's right to schedule a mark-up of provisions in forthcoming legislation from your Committee regarding Afghanistan and Iraq which have been included in H.R. 1585, as ordered reported.

This exchange of letters will be included in the committee report on the bill.

DEAR CHAIRMAN SKELTON: I am writing to confirm our mutual understanding regarding consideration of H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. As you know, the Committee on Education and Labor has a jurisdictional interest in several provisions in the bill.

In the interest of permitting your committee to proceed expeditiously to the floor consideration of this important bill, I do not intend to request the sequential referral of H.R. 1585 to the Committee on Education and Labor. However, I do so with the understanding that by waiving consideration of the bill, the Committee on Education and Labor does not waive any future jurisdictional claim over the subject matters contained in the bill which fall within its jurisdiction. In addition, should this bill or similar legislation be considered in a conference with the Senate, I would expect members of the Committee on Education and Labor to be appointed to the conference committee on such measures.

Finally, I ask that you include a copy of our exchange of letters in your committee's report on H.R. 1585 and in the Congressional Record during the consideration of this bill. If you have any questions regarding this matter, please do not hesitate to call me. I thank you for your consideration.

Sincerely,

George Miller,

Chairman.

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House of Representatives,

Committee on Armed Services,

Washington, DC, May 11, 2007.

Hon. GEORGE MILLER,
Chairman, Committee on Education and Labor,
House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: Thank you for your letter regarding H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. I agree that the Committee on Education and Labor has valid jurisdictional claims to certain provisions in this important legislation, and I am most appreciative of your decision not to schedule a mark-up of this bill in the interest of expediting consideration. I concur that by agreeing to waive consideration of certain provisions of the bill, the Committee on Education and Labor is not waiving its jurisdiction over these matters.

This exchange of letters will be included in the committee report on the bill.

DEAR CHAIRMAN SKELTON: I am writing to you concerning H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. There are certain provisions in the legislation which fall within the jurisdiction of the Committee on Veterans' Affairs.

In the interest of permitting your Committee to proceed expeditiously to floor consideration of this important bill, the Committee on Veterans' Affairs agrees not to request a sequential referral. By waiving consideration of H.R. 1585, the Committee on Veterans' Affairs does not waive any future jurisdictional claim over any subject matter contained in the bill which falls within its jurisdiction. The Committee on Veterans' Affairs reserves its right to seek conferees on any provisions within its jurisdiction which are considered in a House-Senate conference, and requests your support if such a request is made.

Please place this letter into the committee report on H.R. 1585 and into the Congressional Record during consideration of the measure on the House floor. Thank you for the cooperative spirit in which you have worked with the Committee on Veterans' Affairs regarding this matter and others between our respective committees.

DEAR MR. CHAIRMAN: Thank you for your letter regarding H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. I agree that the Committee on Veterans' Affairs has valid jurisdictional claims to certain provisions in this important legislation, and I am most appreciative of your decision not to schedule a mark-up of this bill in the interest of expediting consideration. I concur that by agreeing to waive consideration of certain provisions of the bill, the Committee on Veterans' Affairs is not waiving its jurisdiction over these matters.

This exchange of letters will be included in the committee report on the bill.

DEAR CHAIRMAN SKELTON: I am writing about H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008, which the Committee on Armed Services ordered reported to the House on May 9, 2007.

I appreciate your effort to consult with the Committee on Oversight and Government Reform regarding those provisions of H.R. 1585 that fall within the Oversight Committee's jurisdiction. These provisions involve the federal civil service and federal acquisition policies. In addition, I thank you for including certain provisions of H.R. 1362, the Accountability in Contracting Act, in your authorization.

In the interest of expediting consideration of H.R. 1585, the Oversight Committee will not request a sequential referral of this bill. I would, however, request your support for the appointment of conferees from the Oversight Committee should H.R. 1585 or a similar Senate bill be considered in conference with the Senate. Moreover, this letter should not be construed as a waiver of the Oversight Committee's legislative jurisdiction over subjects addressed in H.R. 1585 that fall within the jurisdiction of the Oversight Committee.

I request that you include our exchange of letters on this matter in the Committee on Armed Services Committee Report on H.R. 1585 and in the Congressional Record during consideration of this legislation on the House floor.

Again, I appreciate your willingness to consult the Committee on these matters.

Sincerely,

Henry A. Waxman,

Chairman.

-

House of Representatives,

Committee on Armed Services,

Washington, DC, May 11, 2007.

Hon. HENRY A. WAXMAN,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: Thank you for your letter regarding H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. I agree that the Committee on Oversight and Government Reform has valid jurisdictional claims to certain provisions in this important legislation, and I am most appreciative of your decision not to schedule a mark-up of this bill in the interest of expediting consideration. I concur that by agreeing to waive consideration of certain provisions of the bill, the Committee on Oversight and Government Reform is not waiving its jurisdiction over these matters.

This exchange of letters will be included in the committee report on the bill.

DEAR CHAIRMAN SKELTON: I am writing to you concerning the jurisdictional interest of the Permanent Select Committee on Intelligence in matters being considered in H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008.

Our committee recognizes the importance of H.R. 1585 and the need for the legislation to move expeditiously. Therefore, while we have a valid claim to jurisdiction over the bill, I do not intend to request a sequential referral. This, of course, is conditional on our mutual understanding that nothing in this legislation or my decision to forego a sequential referral waives, reduces or otherwise affects the jurisdiction of the Permanent Select Committee on Intelligence, and that a copy of this letter and your response acknowledging our jurisdictional interest will be included in the Committee Report and as part of the Congressional Record during consideration of this bill by the House.

The Permanent Select Committee on Intelligence also asks that you support our request to be conferees on the provisions over which we have jurisdiction during any House-Senate conference.

DEAR MR. CHAIRMAN: Thank you for your letter regarding H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. I agree that the Permanent Select Committee on Intelligence has valid jurisdictional claims to certain provisions in this important legislation, and I am most appreciative of your decision not to schedule a mark-up of this bill in the interest of expediting consideration. I concur that by agreeing to waive consideration of certain provisions of the bill, the Permanent Select Committee on Intelligence is not waiving its jurisdiction over these matters.

This exchange of letters will be included in the committee report on the bill.

DEAR MR. CHAIRMAN: Thank you for the opportunity to review the text of H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008, for provisions which are within the jurisdiction of the Committee on Natural Resources. Among these provisions are those dealing with benefits for the National Oceanic and Atmospheric Administration Corps, environmental review, and public lands, including the National Wildlife Refuge System.

Because of the continued cooperation and consideration that you have afforded me and my staff in developing these provisions, I will not seek a sequential referral of H.R. 1585 based on their inclusion in the bill. Of course, this waiver is not intended to prejudice any future jurisdictional claims over these provisions or similar language. I also reserve the right to seek to have conferees named from the Committee on Natural Resources on these provisions, and request your support if such a request is made.

Please place this letter into the committee report on H.R. 1585 and into the Congressional Record during consideration of the measure on the House floor. Thank you for the cooperative spirit in which you have worked regarding this matter and others between our respective committees.

DEAR MR. CHAIRMAN: Thank you for your letter regarding H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. I agree that the Committee on Natural Resources has valid jurisdictional claims to certain provisions in this important legislation, and I am most appreciative of your decision not to schedule a mark-up of this bill in the interest of expediting consideration. I concur that by agreeing to waive consideration of certain provisions of the bill, the Committee on Natural Resources is not waiving its jurisdiction over these matters.

This exchange of letters will be included in the committee report on the bill.

DEAR MR. CHAIRMAN: I am writing with regard to H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. The bill contains provisions that fall within the jurisdiction of the Committee on Energy and Commerce. I support passage of the bill, and I recognize and appreciate your desire to bring it up on the House floor in an expeditious manner. The Committee will not seek a sequential referral of the bill. This decision is based on my understanding that you have agreed that the inaction of the Committee with respect to the bill does not in any way serve as a jurisdictional precedent as to our two committees.

Further, as to any House-Senate conference on the bill, the Committee on Energy and Commerce reserves the right to seek the appointment of conferees for consideration of portions of the bill that are within the Committee's jurisdiction. It is my understanding that you have agreed to support a request by the Committee with respect to serving as conferees on the bill (or similar legislation).

I request that you send a letter to me confirming our agreements as to jurisdiction, including with respect to conferees, and that our exchange of letters be included in your Committee's report on the bill and inserted in the Congressional Record as part of the consideration of the bill. Those provisions under the jurisdiction of the Committee on Energy and Commerce include:

Sec. 606--Guaranteed pay increase for members of the armed forces of one-half of one-percentage point higher than employment cost index (as added via an amendment from Mrs. Drake);

Sec. 661--Consolidation of special pay, incentive pay, and bonus authorities of the uniformed services (as amended by an amendment from Dr. Snyder);

Sec. 2835--Transfer of jurisdiction, former Nike Missile Site.

I look forward to working with you on this important legislation. If you wish to discuss this matter further, please do not hesitate to contact me.

Sincerely,

John D. Dingell,

Chairman.

-

House of Representatives,

Committee on Armed Services,

Washington, DC, May 11, 2007.

Hon. JOHN D. DINGELL,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: Thank you for your letter regarding H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. I agree that the Committee on Energy and Commerce has valid jurisdictional claims to certain provisions in this important legislation, and I am most appreciative of your decision not to schedule a mark-up of this bill in the interest of expediting consideration. I concur that by agreeing to waive consideration of certain provisions of the bill, the Committee on Energy and Commerce is not waiving its jurisdiction over these matters. We will seriously consider your request to support the Committee on Energy and Commerce's request to serve as conferees on the bill.

This exchange of letters will be included in the committee report on the bill.

DEAR CHAIRMAN SKELTON: I am writing to you concerning the bill H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. There are certain provisions in the legislation which fall within the Rule X jurisdiction of the Committee on Homeland Security.

In the interest of permitting your committee to proceed expeditiously to floor consideration of this important bill, I am willing to waive this committee's right to sequential referral. I do so with the understanding that by waiving consideration of the bill the Committee on Homeland Security does not waive any future jurisdictional claim over the subject matters contained in the bill which fall within its Rule X jurisdiction. I request that you urge the Speaker to name members of this committee to any conference committee which is named to consider such provisions.

Please place this letter into the committee report on H.R. 1585 and into the Congressional Record during consideration of the measure on the House floor. Thank you for the cooperative spirit in which you have worked regarding this matter and others between our respective committees.

DEAR MR. CHAIRMAN: Thank you for your letter regarding H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. I agree that the Committee on Homeland Security has valid jurisdictional claims to certain provisions in this important legislation, and I am most appreciative of your decision not to schedule a mark-up of this bill in the interest of expediting consideration. I concur that by agreeing to waive consideration of certain provisions of the bill, the Committee on Homeland Security is not waiving its jurisdiction over these matters.

This exchange of letters will be included in the committee report on the bill.

DEAR CHAIRMAN SKELTON: I write to you regarding H.R. 1585, the `National Defense Authorization Act for Fiscal Year 2008'. This legislation authorizes the Department of Defense programs.

H.R. 1585 contains provisions that fall within the jurisdiction of the Committee on Transportation and Infrastructure. I recognize and appreciate your desire to bring this legislation before the House in an expeditious manner and, accordingly, I will not seek a sequential referral of the bill. However, I agree to waive consideration of this bill with the mutual understanding that my decision to forego a sequential referral of the bill does not waive, reduce, or otherwise affect the jurisdiction of the Committee on Transportation and Infrastructure over H.R. 1585.

Further, the Committee on Transportation and Infrastructure reserves the right to seek the appointment of conferees during any House-Senate conference convened on this legislation on provisions of the bill that are within the Committee's jurisdiction. I ask for your commitment to support any request by the Committee on Transportation and Infrastructure for the appointment of conferees on H.R. 1585 or similar legislation.

Please place a copy of this letter and your response acknowledging the Committee on Transportation and Infrastructure's jurisdictional interest in the Committee Report on H.R. 1585 and in the Congressional Record during consideration of the measure on the House Floor.

I look forward to working with you as we prepare to pass this important national defense legislation.

Sincerely,

James L. Oberstar, M.C.,

Chairman.

-

House of Representatives,

Committee on Armed Services,

Washington, DC, May 11, 2007.

Hon. JAMES L. OBERSTAR, M.C.,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: Thank you for your letter regarding H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. I agree that the Committee on Transportation and Infrastructure has valid jurisdictional claims to certain provisions in this important legislation, and I am most appreciative of your decision not to schedule a mark-up of this bill in the interest of expediting consideration. I concur that by agreeing to waive consideration of certain provisions of the bill, the Committee on Transportation and Infrastructure is not waiving its jurisdiction over these matters.

This exchange of letters will be included in the committee report on the bill.

DEAR MR. CHAIRMAN: This is to advise you that the Committee on the Judiciary has now had an opportunity to review the provisions in H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008, as approved by your Committee, that fall within our Rule X jurisdiction. I appreciate your consulting with us on those provisions. The Judiciary Committee has no objection to your including them in the bill for consideration on the House floor, and to expedite that consideration is willing to waive sequential referral, with the understanding that we do not thereby waive any future jurisdictional claim over those provisions or their subject matters.

In the event a House-Senate conference on this or similar legislation is convened, the Judiciary Committee reserves the right to request an appropriate number of conferees to address any concerns with these or similar provisions that may arise in conference.

Please place this letter into the committee report on H.R. 1585 and into the Congressional Record during consideration of the measure on the House floor. Thank you for the cooperative spirit in which you have worked regarding this matter and others between our committees.

Sincerely,

John Conyers, Jr.,

Chairman.

-

House of Representatives,

Committee on Armed Services,

Washington, DC, May 11, 2007.

Hon. JOHN CONYERS, Jr.,
Chairman, Committee on the Judiciary,
House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: Thank you for your letter regarding H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008. I agree that the Committee on the Judiciary has valid jurisdictional claims to certain provisions in this important legislation, and I am most appreciative of your decision not to schedule a mark-up of this bill in the interest of expediting consideration. I concur that by agreeing to waive consideration of certain provisions of the bill, the Committee on the Judiciary is not waiving its jurisdiction over these matters.

This exchange of letters will be included in the committee report on the bill.

Very truly yours,

Ike Skelton,

Chairman.

FISCAL DATA

Pursuant to clause 3(d) of rule XIII of the Rules of the House of Representatives, the committee attempted to ascertain annual outlays resulting from the bill during fiscal year 2008 and each of the following five fiscal years. The results of such efforts are reflected in the committee cost estimate, which is included in this report pursuant to clause 3(d)(2) of rule XIII of the Rules of the House of Representatives.

CONGRESSIONAL BUDGET OFFICE ESTIMATE

In accordance with clause 3(c) of rule XIII of the House of Representatives and section 402 of the Congressional Budget Act of 1974, the committee has requested but not received a cost estimate for this bill from the Director of the Congressional Budget Office.

COMMITTEE COST ESTIMATE

Clause 3(d)(2) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison by the committee of the costs which would be incurred in carrying out this bill.

H.R. 1585 would authorize appropriations of $499.1 billion for fiscal year 2008 for the activities of the Department of Defense (DOD) and the national security programs of the Department of Energy (DOE). The budget authority implication of the authorization of appropriations in H.R. 1585 is $507.0 billion. It would also authorize an additional $141.6 billion emergency appropriation for fiscal year 2008 to support Operations Iraqi Freedom and Enduring Freedom.

The committee estimates that enacting H.R. 1585 would not increase mandatory budget authority for fiscal year 2008 or the following five years. In terms of discretionary and mandatory budget authority, H.R. 1585 is within the allocation provided by H.Con.Res. 99, as passed by the House on March 29, 2007, which establishes the Congressional budget for the United States Government for fiscal year 2008 and sets forth appropriate budgetary levels for fiscal years 2007 and 2008 through 2012.

The committee has been in close and constant consultation with the Congressional Budget Office and has provided copies of H.R. 1585 as ordered reported on May 9, 2007, to develop an estimate and comparison as required under section 402 of the Congressional Budget Act of 1974. The committee expects to receive this letter prior to the consideration of H.R. 1585 by the House of Representatives.

COMPLIANCE WITH HOUSE RULE XXI

Pursuant to clause 9 of rule XXI of the Rules of the House of Representatives, the committee is required to include a list of congressional earmarks, limited tax benefits, or limited tariff benefits, as defined in clause 9(d), 9(e), or 9(f) of Rule XXI of the Rules of the House of Representatives, which are in the bill or the report. The following table provides the list of such provisions which are included in the bill and the report:

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OVERSIGHT FINDINGS

With respect to clause 3(c)(1) of rule XIII of the Rules of the House of Representatives, this legislation results from hearings and other oversight activities conducted by the committee pursuant to clause 2(b)(1) of rule X and are reflected in the body of this report.

With respect to clause 3(c) of rule XIII of the Rules of the House of Representatives and section 308(a) of the Congressional Budget Act of 1974, this legislation does not include any new spending or credit authority, nor does it provide for any increase or decrease in tax revenues or expenditures. The bill does, however, authorize appropriations. Other fiscal features of this legislation are addressed in the estimate prepared by the committee under clause 3(d)(2) of rule XIII of the Rules of the House of Representatives.

GENERAL PERFORMANCE GOALS AND OBJECTIVES

With respect to clause 3(c)(4) of rule XIII of the Rules of the House of Representatives, this legislation would address several general and outcome-related performance goals and objectives. The general goal and objective of this legislation is to provide the necessary resources and authorities to restore military readiness, meet the urgent and immediate force protection needs of our troops, and take care of service members and their families, all of which further the national security interests of the United States.

With respect to the outcome-related goal of restoring military readiness and reducing strategic risk, the objective of this legislation is to:

(1) Address manpower needs with an increase of 36,000 personnel in the Army, 9,000 in the Marine Corps, 963 in the Air Force, and 698 in the Navy in 2008. This would bring end strength levels to 525,400 for the Army, 189,000 for the Marine Corps, 329,098 for the Navy, and 329,563 for the Air Force.

(2) Authorize $13.6 billion for the Army and $8.4 billion for the Marine Corps to fully fund equipment reset requirements and authorize $1.0 billion for the National Guard and Reserve to purchase equipment on its unfunded requirements list;

(3) Establish the Defense Readiness Production Board to mobilize the defense industrial base to speed up the production of military equipment and to authorize $1.0 billion for the Strategic Readiness Fund;

(4) Provide $250.0 million to address training shortfalls throughout the Department of Defense; and

(5) Require a plan on reconstitution of prepositioned equipment stocks.

With respect to the outcome-related goal of meeting the force protection needs of our troops, particularly those deployed to Iraq and Afghanistan, the objective of this legislation is to:

With respect to the outcome-related goal of taking care of service members and their families, the objective of this legislation is to:

(1) Provide a 3.5 percent across the board pay raise for our men and women in uniform. The raise would reduce the pay gap between the military and private sector pay to 3.4 percent;

(2) Prohibit increases in both TRICARE and pharmacy user fees, which would prevent over $1.9 billion in healthcare costs from being passed on to service members; and

(3) Adopt the provisions from the House-passed Wounded Warrior Assistance Act that would establish new requirements to provide the people, training, and oversight mechanisms needed to ensure high quality care and efficient administrative processing in an environment that reflects high quality of life standards for recovering service members.

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to Rule XIII, clause 3(d)(1) of the Rules of the House of Representatives, the committee finds the authority for this legislation in Article I, Section 8 of the United States Constitution.

STATEMENT OF FEDERAL MANDATES

Pursuant to section 423 of Public Law 104-4, this legislation contains no federal mandates with respect to state, local, and tribal governments, nor with respect to the private sector. Similarly, the bill provides no federal intergovernmental mandates.

RECORD VOTES

In accordance with clause 3(b) of rule XIII of the Rules of the House of Representatives, record votes were taken with respect to the committee's consideration of H.R. 1585. The record of these votes is attached to this report.

The committee ordered H.R. 1585 reported to the House with a favorable recommendation by a vote of 58-0, a quorum being present.

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CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

The committee has taken steps to make available the analysis of changes in existing law made by the bill, as required by clause 3(e) of rule XIII of the Rules of the House of Representatives, and will make the analysis available as soon as possible.

ADDITIONAL VIEWS

We support H.R. 1585 and feel that it reflects our committee's strong and continued support for the brave men and women of the United States armed forces. In many ways, this bill is a good bill. It authorizes the President's request for $503.8 billion for the Fiscal Year 2008 base budget of the Department of Defense and national security programs of the Department of Energy. Additionally, it includes almost $142 billion to fund Fiscal Year 2008 war costs.

The Army and Marine Corps end-strength growth in this legislation continues initiatives started by this committee several years ago: in Fiscal Year 2008, the Army would be authorized 525,400 active duty personnel--3,000 more than authorized last year--and the Marine Corps would be authorized 189,000 active duty personnel--9,000 more than last year. It provides for successful programs--such as the Commanders Emergency Response Program, which is working well on the battlefields of Iraq and Afghanistan--and continues this committee's commitment to force protection by adding $4.1 billion for the Mine Resistant Ambush Protected vehicle.

As proud as we are of this legislation, we also recognize that this bill is not a perfect bill.

We believe that all Members of Congress owe our soldiers, sailors, airmen, and marines the very best available equipment, training, and support. To fulfill this obligation, Armed Services Committee members must take our legislative responsibilities seriously and live up to our committee's mission, which is to authorize policies, programs, and appropriations that provide our courageous servicemembers with the best possible tools to undertake their missions. This is especially true during a time of war.

Therefore, we must express our strong disappointment, concern, and frustration with the failure of this committee to adopt an amendment that would have authorized emergency supplemental appropriations for Fiscal Year 2007. In the past, committee members lamented the lack of an authorization process for such appropriations, which are necessary to provide near-term funding for our military's ongoing missions.

This amendment presented Armed Services Committee members with the supplemental appropriations conference report language and appropriations amounts that we had already seen, debated, voted upon, and passed on the floor of the House of Representatives--minus the non-war-related items outside the committee's jurisdiction, such as the funds relating to spinach and shrimp. Those items bloated the recently-vetoed emergency supplemental appropriations bill, H.R. 1581. The amendment also omitted that failed bill's controversial Iraq language, such as possible withdrawal dates that were arbitrarily tied to a calendar and not the operational conditions on the ground.

Adding this amendment would have allowed the committee to reclaim its jurisdiction over authorizing funds for Department of Defense activities and send a strong, supportive message to our troops, who are currently deployed in harm's way. It truly is a shame that claims of perceived process infractions denied us this opportunity.

We believe that Congress, and particularly the Armed Services Committees in both chambers, have the unmistakable obligation to ensure that the Department of Defense develops and deploys defensive capabilities that protect the American people, our forward-deployed forces, and our allies. This includes promising programs in the area of missile defense.

In 2006 alone, there were roughly 100 foreign ballistic missile launches around the world, including from North Korea and Iran. In the face of these mounting threats, H.R. 1585 cuts almost $800 million in funding that would enable our military to develop and field a robust, layered ballistic missile defense system. That system would be capable of intercepting missiles in the boost, midcourse, and terminal phases of flight. We express deep disappointment that this legislation fails to recognize the need for multiple missile intercept opportunities, provide adequate funds for the capability to engage a missile before it releases its warhead, and balance investments in near-term systems and future capabilities.

H.R. 1585 also reflects a funding reduction of $864 million to the Army's Future Combat Systems (FCS) program, a decrement that amounts to more than the cuts in the last three years combined. Modernization ensures the readiness of our future force and is a strategic necessity. As the central component of Army modernization, FCS is the first comprehensive modernization effort since World War II. It fills capability gaps that cannot be fulfilled by solely upgrading current systems. FCS represents approximately 3% of the Army's base budget for Fiscal Year 2008. Such a large decrement to the FCS program in one year could: terminate rather than slow down select Unmanned Aerial Vehicles, robotic vehicles, and Manned Ground Vehicles (less Non-Line-of-Sight-Cannon); invalidate the currently-approved system of systems Joint Requirements Oversight Council requirements; and impact systems engineering work on software and network design, logistics, and training efforts. We agree that the Army needs a higher top-line, but the Army's funding crisis cannot be solved by making such large reductions to the FCS program. The Army must be allowed to invest in technologies and equipment that enable our most important asset--the soldier--to remain more effective than our adversaries, who are quickly adapting their methods, tactics, and tools of warfare.